Ask the Expert

Everywhere you look in the news these days, the message is cautionary and there’s a lot of commentary about a “credit crisis”?  Are average consumers being affected by this?   How is the home-buying market being impacted?  

The answer is kind of like the opening line from a famous novel, “It was the best of times; it was the worst of times.”   Certainly for some high-powered commercial banks, insurance companies and investment firms, it’s the worst of times. We all know who they are. And, in certain parts of the country, I’m told, a consumer’s ability to get a loan for a home purchase, or an automobile, has been impacted due to the influence of these same financial institutions in those markets.   

The good news is that, right now, New Hampshire consumers are in a very positive, one could almost say “opportune” situation; the best of times in many ways. Home prices are lower than they have been in years. There’s talk we may be getting close to the bottom of the price decline we’ve been experiencing for the past year or two. Sellers, anxious to move themselves, are motivated to help with closing costs and settlement fees. Interest rates are very favorable and there all kinds of financing options available. Local banks, credit unions and other financial institutions have money to lend and are eager to make new loans and mortgages. The current credit crisis is, so far as New Hampshire is concerned, not something the average consumer needs to worry much about. Yes, Fannie Mae and Freddie Mac and other lending entities have tightened up on their parameters a bit, but it’s really just a return to more practical and logical lending guidelines. 

The recent legislation passed by our House Members and Senators, and promptly signed by the President, is designed to help prevent the troubles of these larger institutions from trickling down to smaller businesses and, finally, to consumers — if we did nothing. But, in fact, we did do something. It may take a few weeks or months, maybe longer for Wall Street to pull itself together and get on with the business it’s all about. But, right now in New Hampshire, we have it pretty good. If home ownership is something you have been planning on, there’s no reason not to continue with your plans. Call your mortgage lender, bank or credit union and get pre-approved, today, so you and your Realtor can start, in earnest, to find that perfect home. The best of times don’t last that long!

Barbara Cunningham