How should Real Estate Agents respond to the recent tightening of Subprime loan programs?
How should Real Estate agents respond?
1. Align yourself with loan officers who have access to FHA/My Community loans.
2. Ask your lender if they have access to the ‘Community Reinvestment’ loans offered by the large banks.
3. Become the trusted advisor. If you have a client with credit challenges, help them get educated about credit. A good starting point would be having them preview my free e-book titled “About Credit’. http://www.dallasloanguy.com/docs/about_credit.pdf . Although this is just a start, it will give your clients a good foundation of knowledge to build upon.
4. Beware of the credit repair companies…. who are more interested in collecting fees for credit repair than they are in DOING credit repair.
5. Be mindful of where your referrals are coming from. You may want to reconsider how much of your marketing dollars go to the referral sources that send you subprime business.
6. Talk to your lender. Don’t be caught off guard by tightening loan guidelines. Get the clients prequalified as early as possible.
The world is not coming to an end…. but there are going to be some clients who could qualify last year that will not be able to get a loan this year. Don’t let this be an excuse for a lack of business….. arm yourself with the tools to weather the changes.
Please write more on the subprime meltdown and comment on the possible ramifications for Alt-A and A paper. It looks like at this time, dere’s no cash for nobody!
Comment by txchick57 — March 14, 2007 @ 3:23 pm
“Align yourself with loan officers who have access to FHA/My Community loans.”
You’re strapping a tourniquet made of Scotch Tape on a gaping chest wound, my friend.
Comment by mark — March 14, 2007 @ 4:03 pm
Real Estate agents should bite the bullet now and find a new job. Don’t they see the whole market drying up?
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