Bob Kieber
Special to the Daily

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October 12, 2012
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Financial Facts: Mortgages for most are still available

If you are like me and tired of all the news on mortgage problems that are occurring to very few homeowners nationwide, you need to read on. Now this does not mean that you or I do not care that some people may be loosing a home, but let us look at what is really happening.

First of all, only 2-4 percent of all homeowners are having problems paying their mortgages. This may be due to work layoffs, or sickness or a dozen other things that affect the homeowner's income. Then there also may be something as simple as poor planning on the part of that homeowner. Not planning for an adjustment in the mortgage payment is a big part of that percent and the borrowers knew about those adjustments when the funds were borrowed to buy that home. But I am not going to spend time on that small percentage of borrowers; I am going to reassure those of you who are looking to be a first-time home buyer or just looking to upgrade all the good news in the mortgage marketplace.

We need to look at the question that I get from real estate agents and home buyers almost on a daily basis, is there money available to finance a home, second home or investment property? The answer is simple and short, yes.

There are many mortgage lenders out there just looking for people to sign that purchase contract and request to borrow money. In fact, I have lost only a few investors over that past year and I have added a couple of new investors so I have just as many available today as last year, prior to the mortgage marketplace consolidation.

So what are these investors looking for in new borrowers? Well, the tables have gone back to where we were six or eight years ago. If you have average to above-average credit scores, there are mortgages available to you. If you have money in the bank, stock market, IRA's, or other forms of cash equivalents there are mortgages available to you.

In fact, in the past year I have had only a couple of potential borrowers who just did not qualify for a mortgage. They had below-average credit scores or no funds saved and were looking to buy with no investment of their own funds. This is just like the mortgage marketplace six years ago. If you wanted to borrow money to buy a home you were expected to make an investment of your own funds, so you had something to loose if you did not pay the monthly payment. Makes sense to me!

Put yourself in the seat of the lender. You want to buy a $400,000 home with no money down and your personal credit history shows that you historically do not make your payments on time - not a great sales tool to get that loan approved.

But for most of you money is still available and readily available. I am making loans each month for buyers of new homes and second homes. These buyers have a proven record of paying their bills on time and have enough income to qualify for that loan. There are buyers who are buying investment properties as they know the old stock market theory of buy on bad news and sell on good news. Most of the nation believes in the bad news and in areas such as Denver there are deals to be had for buying homes at less than market prices.

So money to borrow is still available and it is a good time to diversify into more real estate. Mortgages are being approved every working day and those buyers should benefit when the news goes to another overblown catastrophic subject.

For answers to your mortgage related questions, call Bob Kieber at (970) 453-4700 or email him at rkieber@centennialbanking.com. Bob is a local mortgage lender with Centennial Bank. He has 30-plus years of professional experience in real estate, finance and investments, and is a longtime resident of the High Country. Member FDIC, Equal Housing Lender. NMLS Bank #401640 Broker #289610. For tax benefit information please consult with a professional tax advisor. The opinions expressed are those of the individual, and do not necessarily reflect those of Centennial Bank.


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The Summit Daily Updated Oct 12, 2012 11:26PM Published Oct 12, 2012 11:24PM Copyright 2012 The Summit Daily. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.