The chief economist for NAR has recently sighted that contract failure rates have hit a staggering 33%, up from 18% the prior month. NAR claims the main reason for this is due to declined mortgage applications and appraised values.
This is not making any sense to us as lending guidelines continue to open up making it easier for buyers to qualify for home loans.
- Down Payment requirement down to 20% for Jumbo Loans
- Down Payment requirement down to 3% for Conventional Loans
- Credit Score requirements lowered to 620
- Many conventional loans only require a Drive-By Appraisal
- Purchase Transactions have priority and are flying through Underwriting
This is great news heading into 2012 with expanding loan options. Purchase Agreements are falling apart for a number of different reasons. Call us if we can help your buyer understand what needs to be done to get their loan clear to close. Or call us if we can help you understand what the lender is telling your buyer.
Do you agree with NAR’s findings? Comment below, we would love to hear your thoughts!
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