Too Scared To Look Out The Window?

“Everyone around here is too scared to look out the window and see that it's not raining”

I’d love to take credit for coming up with that statement, but I can’t take ownership.  It is a quote from a lender concerning his organization and he used it after telling me that his underwriters had refused a loan that would have been a legitimate “gimme” a year ago and should have been the same today.  I don’t want to use his name, or the name of his organization, but it’s probably important to let you know that he works for an extremely well-recognized national lender. 

The day after hearing this wonderfully observant analysis on today’s lending market, I happened to meet with extremely well qualified clients who have outgrown their current home and are trying to buy something bigger.  These are professionals with impeccable credit and good jobs.  A year ago, they had no problem getting qualified to make the move, without having to sell their current home.  Today, that option has disappeared.  And I would argue that the option has disappeared because “everyone around here is too scared to look out the window and see that it’s not raining.”

I’ve blogged about this before, but I fully believe that the pendulum has swung much too far and is has to get back to the middle.  Good buyers are being lost because they can’t get loans that they should be able to get (i.e., they’re qualified and they can afford it) and that means that good houses are sitting because the good buyers can’t buy them.  This is not where we want to be.

We need the decision-makers to look out the window and see that the sky is clearing.

Contributing Blogger - Gretchen Koitz

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