What's UP?

What’s UP!

Well..I’ve been quite the busy little bee- check out my website-you will find the BLOG, a welcome message podcast and an interview with me on investing in Real Estate, in the media section… 

http://theldmteam.com/ldm_listings.html

Phew!  In addition, I was quoted twice in cyberhomes.com  http://www.cyberhomes.com/readingroom.aspx?article=realestatemarketing on marketing property

http://www.cyberhomes.com/readingroom.aspx?article=buyingfears on buyers fears

Hoping your summer and travels were wonderful and relaxing.  It feels great to be back and am excited for a very busy fall! Traditionally August is quiet in the sales market as people travel.  After Laror day, there has been a lot going on-the phone is ringing and people are back into the buying and leasing mode.  The fall is traditionally the second busiest time of the year.

People are motivated because there is more negotiability, rates are down and there are a host of new properties that just came on the market.  There are also many people waiting on the sidelines to see what will happen-admittedly, every time I went to send this out, it needed to be edited as there are so many changes taking place!

Even though there is fear, one of the biggest reasons people are buying is due to the Fannie Mae takeover.  Recently the interest rates decreased fueling a new interest for buyers and faith for those needing to sell!  The fear once in the air has lifted and people are getting back into ACTION!  It’s always better to own your own home and invest in yourself than in your landlord- right?  If you look at property as a LONG TERM Investment time and time again it’s proven to be an excellent investment..in yourself!

Below is an in depth piece from my mortgage expert friend Ezra Tawil at Apple Mortgage…

THE FANNIE MAE TAKEOVER: WHAT DOES IT MEAN?

What does the government's takeover of Fannie Mae mean for home buyers?   Well, the news had a positive effect on mortgage rates, as rates on a 30 year fixed dropped sharply to 6% & below.  But looking further out, especially for buyers in the NY Metro area, where property values are much higher than the national averages, the writing is clearly on the wall: the mortgage world is going to diverge into two distinct markets.  On the one hand will be "conforming" loans that will now be backed in some shape or form, by the US Government.   While this will soothe fears, it also comes with a price: loan limits that are way too low for the NY market.  The large money center banks, such as Citibank, Chase, & Wells Fargo, will phase out all lending except that which is backed by the government. In

Manhattan

, where the average price of an apartment is well over $1,000,000, this means that a very large percentage of buyers in

New York

will not qualify for these loans.     

That leaves the market open for what we may call the "niche" lenders: small to medium sized regional banks & local savings banks.  These are the lenders that never got caught up in the excesses of the go-go years; they have very strong balance sheets, & plenty of cash to put to use.  Since they hold their mortgages for their own investment portfolio, they do not need government backing.  The lenders who will dominate the

New York

market for these jumbo loans in coming years will be lenders such as: Astoria Federal, Ridgewood Savings, NCB, 

First

Republic

,

Hudson

Valley

, etc.  As government guidelines grow tighter, these lenders -  while guided by common sense -  will continue to lend on scenarios that are ordinary for NY, but exceptional on a national level: million dollar-plus loans, co-ops, condops, multi-families, foreign nationals, resident aliens, etc.        

In short, Chase, Wells Fargo & the others, will not be able to service the NY jumbo borrowers for much longer.  The best solution for these buyers is to use the services of a mortgage broker - not any company advertising in the newspaper, but one with the reputation, integrity, and established relationships with many of these "niche lenders."  Going forward, the guidance & resources of the top tier brokers will be essential to the successful completion of your real estate transactions.   -Ezra

The days of 100 or 105% financing are over.  Although we don’t see that much in NYC and

Brooklyn

, it’s not uncommon to see this in the suburbs.  Plan to see 80% financing for a first or second home or less going forward.  Investment properties will have higher down payments as well.

 We are going back to bank standards from a few years ago which quite frankly, are a lot safer.  Yes many of you know I am rather conservative and try to protect my customers because the possible damage of being so overleveraged can take many, many years to repair- along with the stress and heartache that go along with it.  Many of you know money problems are the biggest cause for divorce-don’t let this happen to you!

Many people don’t think we’ve hit bottom yet.  One thing to consider is how low the loan rates and under what terms they would be….if you are paying cash- YES- sit and wait…if not, it’s possible the interest rates increase rapidly-did you know a 1% increase in interest rates raises the cost to borrow the same amount by 17%-WOW! In addition, the abundant supply we have now may dry up…due to population increases and building and development drastically decreasing.

So, buy as much home as you can afford today, and have faith…property is one of the biggest and best investments you can make in yourself! If you need to sell now-leasing may be the better short term solution for you!

When you want to get the best deal when buying, selling or leasing in ANY market-call the LDM Team!

Need a service? Looking to buy/sell/lease outside of

Brooklyn

and NYC?

Contact us- We have tons of real estate professional contacts throughout NYC and overseas! Being well established in our business, we have tons of trusted resources that take the guesswork out- for you!

GO TO www.theLDMteam.com- you will hear a live welcome message, and live interview on properties in the MORE section- ENJOY!