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Don’t Underestimate the Millennials and the Echo Boomers

The Millennials are just hitting thirty, and the Echo Boomers are in their late twenties. Both groups are ready—or about ready–to be homeowners.

There has never been a better time to afford to own a home on the Emerald Coast.

Jobs are available, and house payments are often the same or lower than rent. Mortgage analysts are predicting that 30-year-fixed rates—currently at 60 year lows–will remain low or below 5% for most of 2012.

More than a year ago, when FHA guidelines reduced the amount a seller can contribute to closing costs by half (from 6% to 3%) it looked like buyers may have to begin jumping through impossible hoops to get a government-backed loan. Because FHA requirements were more stringent, some lenders developed their own conditions which were over and above what FHA required.

Originally these extra conditions were initiated in an attempt to improve the quality of loans being made—but this little-known practice by lenders called, “investor overlays,” began to close doors for many borrowers. Some lenders decided to overlay FHA guidelines with their own conditions that had to be met by borrowers in order to get a loan.

Ironically, even though a time of economic uncertainty still exists, “investor overlays” seem to currently be creating a beacon of hope for many buyers who are just on the cusp of these more stringent requirements.

Borrowers today are more savvy than ever, and the overlay practice has begun to prompt them to be pro-active–going to the next lender and the next until they get the approval they are after.

In other words—if a borrower gets turned down by a bank they can now go down the street to another bank or mortgage company and try again. It is no longer unusual to get turned down by one bank or mortgage company using stringent overlays–only to be accepted by the next one who is not using the practice, or who is not as stringent.

Buyers are learning to get their information together in a ready format that can be submitted to more than one lender. An immediately available, well-documented, current, organized folder will go a long way to ingratiating any buyer when applying for a loan.

The folder may include such information as a copy of the sales contract; the past two years of residence information, employment history, monthly budget, and information about all income sources—including W-2s and federal tax returns; the past two months of bank statements and check stubs; copies of current insurance: homeowners and flood.

There may be other things required, depending on an individual’s circumstances, but most of the above is a definite.

Folks, you know, and I know that real estate values are already increasing in the Destin-Fort Walton Beach area of Florida. As I stated above: “There has never been a better time to afford to own a home on the Emerald Coast!”

If you are thinking of buying or selling a home in Panama City Beach, Destin or anywhere in the area—then the Veach Team is prepared to help you find the Florida home of your dreams. Contact us today, and let us show you why “Life is a Beach” here in beautiful Destin! And don’t forget to “LIKE” us on Facebook and Twitter – we’d love to talk with you.

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