Lending Update – May 2021

Friends of Restaino and Associates- I hope this note finds you safe and healthy.   What a year 2021 has been in real estate thus far!  I am sure many of you would agree, the real estate market has never been this competitive.  With the sun coming out, warmer weather on the horizon, and your continued hard work, we are all hoping more listings are on their way.  My name is Joe Boyle, and I originate mortgages with Cornerstone Home Lending.  Thank you for reading some of my thoughts below. 

On the lending side of things, the pressure is on!  To accommodate the market of today, we have had to be incredibly creative.  Writing an offer with a sale contingency has almost become obsolete.  Lenders have been forced to work with higher debt to income ratios, bridge loan scenarios, co-borrowers needing to be added, and quick closings to name a few.  The necessity of being pre-approved upfront has never been demanded more.  A strong pre-approval coupled with a call to a listing agent has proven to be beneficial in this market.  Let’s not forget a well written offer to purchase too!  It is always important for buyers to have a mortgage originator available to handle the many different scenarios we are seeing in this market. We have seen escalator clauses, appraisal buffers, and the waiving of many different contingencies on offers to purchase to make them more competitive. 

A strong and competitive market has been beneficial to some, but detrimental to others.  First time home buyers and low to moderate income buyers are feeling the pinch.  FHA, VA, USDA, and WHEDA loans have become less attractive to selling parties.  With the quickly appreciating market, appraised values are not meeting offer prices at times.  This has required the lending side to restructure many of the buyer’s lending options.  The Federal Reserve has made a commitment to keeping rates relatively low through 2021.  The most recent stimulus package and pending infrastructure bill in Washington D.C. has added more fuel to the fire in financial markets.  And, the vaccine is beginning to make its way into young people’s arms.  We may be redefining the Roaring 20’s!  I believe the outlook for real estate is quite bright!  The strong market has further enforced the necessity for strong sales professionals in both real estate and mortgage financing.

Working for a company that truly wants to serve clients, referral partners, and the community is very rewarding.  Cornerstone Home Lending is dedicated to making the mortgage process as efficient and easy as it can be, while progressively changing the way mortgage business is done.  Cornerstone Home Lending is a solution-oriented company offering many mortgage options!  Those options include FNMA, FHLMC, FHA, VA, USDA, WHEDA, Jumbo’s, ARM’s, Reverse Mortgages, Non-Qualified Mortgage products, non-warrantable condo’s, and Renovation/Construction to name a few.  Cornerstone Home Lending services the overwhelming majority of loans they originate and underwrites loans in house!

Just as in the past, I look forward to partnering with Restaino and Associates in 2021! Please let me know how I can help you and your business. I am available to you anytime as a resource.  Below is a valuable tool for you to share with friends, family, and your clients!