All Real Estate Info Blog

I have had so many clients who get themselves into a large monthly payment on a car. Then they think that it should be as easy to buy a house as it was the car. Wrong! Mortgage companies will only allow you to have a small total amount of other debt. (Debt other than a mortgage payment) Most of us have credit card payments, student loans or other installment loans. By the time you add a $300 - 500 car payment on, you are a high risk. You will need to get one of those scary sub-prime loans the news has been talking about lately.

Always buy a house first. Then, if you must have a different vehicle, buy an affordable one. Car dealers will finance anyone. They don't care about your debt or ability to pay for the car. They can always repossess it.

This advice goes to all other types of buying too. Do not go out on a shopping spree just because you were approved for a mortgage. I know that you will need furniture and appliances. Be patient. The lenders like to look at your credit just before closing. If they see new loan amounts, you could lose the house of your dreams. Or, at least the closing will be delayed while they figure out if you still qualify.

Countrywide has been given a bad rap by the news media. Sure, the loan market is having problems and some companies have gone under. But, Countrywide is doing fine. Here are the stats on loan origination and servicing.

Rank Company Production
1. Countrywide $94.6 billion
2. Wells Fargo $68.0 billion
3. Chase Home Finance $50.4 billion
4. Bank of America $48.0 billion
5. CitiMortgage $36.6 billion

This table reflects the biggest mortgage lenders by residential servicing portfolio size as of Sept. 30, 2007:

Rank Company Servicing Portfolio
1. Countrywide $1.46 trillion
2. Wells Fargo $1.32 trillion
3. Chase Home Finance $0.60 trillion
4. CitiMortgage $0.58 trillion
5. Bank of America $0.38 trillion

My favorite loan person, David Cruse, says that the loan applications are starting to pick up. It is no surprise to me. Countrywide has the most competitive rates and loan packages in the business. You can still get 100% loans with them.

Good news-Sept jobs report shows there were over 100,000 new jobs created.

Bad new-30 year interest rate on home loans went up a little because of the good news about the jobs.

Good news-More existing homes will sell in the coming year.

Bad news-Fewer new home construction starts will drive up prices of existing homes for sale.