What is Going on with the Banks, Lenders & Home Loans on Maui??
This week Fine Island Properties is interviewing our Affliate Aloha State Home Loans to get some answers regarding the recent mortgage meltdown and what it means for our buyers and sellers.
Kim Haueisen of Aloha State Home Loans is answering our questions and if you have additional questions please contact Kim directly at 808-298-7092 or email her at Kim@FocusMaui.com
What does Subprime Meltdown mean and how did this come about?
Many Subprime and Adjustible home loan rates have moved dramatically higher, due to the Federal Reserve Boards recent rate hike cycle. So as these rates are adjusting higher (and homeowners payments right along with it) the homeowners are finding that they are unable to keep up with the dramatic increase in payment. In the past homeowners could put their home on the market, realize enough profit to cover any prepayment penalities associated with their home loan and literally move on. But the soft real estate market isn't making this quite so easy any more and houses aren't selling as quickly and the home appreciation rates enjoyed in the past have moderated.
How does this impact our Buyers and Sellers?
In the short term, home loan rates are benefiting, as the stock market is taking a beating, causing money to flow into Bonds and Mortgage Backed Securities, which benefits the buyer who needs a lower rate and opens up a bigger pool of buyers for a seller. But the long term picture may spell higher interest rates ahead, as lenders have to absorb the cost of the loans that went belly-up, combined with the cost of increased compliance and accountability standards. Now more than ever it is clear that buyers and seller need to work with a Real Estate Professional and Loan Specialist that can ensure that their dream of homeownership is viable and that the transaction doesn't fall apart.
Because of recent events, credit and lending standards are tightening. What should our clients know and can they do anything to help them prepare for the loan process?
As you probably know, I regularly invest in my business to make sure I have the best tools and systems available to serve your client's needs. One of the major steps I've taken is earning the Certified Mortgage Planning Specialist (CMPS) designation. As a CMPS, I have gone through rigorous training and testing in order to hone my skills in helping your clients utilize their mortgage as a tool to build wealth. Additionally, Aloha State Home Loans can analyze your client's credit and give them a detailed report of the actions that can be taken to increase your client's credit score. ALL AT NO CHARGE. I've already made the investment in this service to serve our clients because I believe it is important that they receive a level of service unlike most would expect. We build relationships for the long run, not just to provide a "transaction" one time service. So although some of your clients may not have a need for a home loan at this time, I still would welcome them to take advantage of the investment I've made and I'll sit down with them and go over personalized instructions for helping them to improve their credit score-even if it's already great!
Thank you to Kim from Aloha State Home Loans for your insight and the assistance you provide our clients and we would welcome the opportunity to have you back to our Blog again soon.
Please visit our website for more information and to search the Maui MLS at:
Aloha, Gina Duncan, R (S)
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