Is Time Running Out?

Yesterday while waiting for our respective clients at a closing, the other Realtor and I were discussing the market and the first time home buyers. We both could have pulled our hair out trying to convey the sense of urgency that is just around the corner. The hardest part of the job sometimes is informing people of what is really happening in the market. I guess it is a matter of trust and I can understand that. Here is what is happening with the first time home buyers who are applying for the credit. Most of those buyers are using FHA which is a government program that will allow you to have less down on the house and in some cases the interest rate will be better. (But not all cases) So with the lure of lower downpayment and a smaller interest rate buyers have flooded FHA with applications. Remember this is the government!! Have you ever waited in line for a drivers license at the DMV? Well that is what waiting for loan approval from FHA is like--a nightmare! Missed dates for loan commitment are the norm. What would normally take 30-45 days is now taking 60-75 days. So here we are in the middle of July and it appears as if you have half the year to make a decision. Hold that thought. You have about a month or two to find your home then you are going to be one of the scores who are trying at the last minute to get their loan approved, in an already swaped system. So time is running out and I am not kidding...if you are on the fence make a decision either way.