Greenville Real Estate offers Unique Opportunities to Home Buyers

An interview with Charles White at NBSC Bank downtown Greenville:

Recently, I had the privilege of interviewing a very informed mortgage banker, Charles White with NBSC in Greenville SC, about the current mortgage fallout and how it is effecting the Greenville South Carolina Real Estate Market.  Charles offers a unique insight into the current mortgage situation and how these challenges have actually produced very good purchase opportunities within the local real estate markets. Here is the interview:

How long have you been in the lending industry?

I have been in Banking/Mortgage Lending since 1995 with 10 years in the mortgage arena.
 

What is your analysis on the current mortgage situation?

We definitely have 2 completely different stories happening at the same time. One that is misunderstood, misrepresented, and not as dire as you are led to believe by those in the media and the other story of hope and positivity that is not being told.

The mortgage malaise as its called is mostly a result of the “jumbo” loan turmoil-a jumbo loan is a loan over $417,000. At present, the number of investors who have an interest in buying these jumbo loans has decreased drastically. This is due to the subprime foreclosure fallout and now investors are much more cautious as to what they own. As a consequence the rates are much higher for jumbo loans than the y were just 6 months ago, plus the 1.0% difference in rate between a jumbo and conforming is higher than the normal .5 separation between the 2 types. Not only have rates increased on Jumbo loans giving borrowers payment shock, but the program parameters are much tighter now than 2 months ago and many of the “exoctic” programs have disappeared completely. Second and investment homes really have risk premiums (rates higher, max LTVs lower, and fully documented loans) attached to them like we haven’t seen in a few years.

The big thing to remember is that the industry is becoming what some call “old fashioned”  but I like to think of it as prudent. I am giving someone $975,000 to buy a house then its perfectly ok to make sure they can REALLY afford it. So the person who wants to get a jumbo loan will have to qualify like they used too, put a normal down payment,  and will have a higher rate in relation to the normal rates for Jumbos when you look at the conforming rate. However, the person who wants zero down, interest-only, can’t verify income, and it’s a second/investment property, then he/she will have a very hard time getting a loan and if they do the rate will be very high. That’s the bad story circulating amongst the media yet there is another story that impacts most of us in the Upstate and its not being told.

Just as the Jumbo loan market is in a trying time, the conforming (loans at $417,000 or lower) couldn’t be better. Rates-on average-are in the high 5s to low 6s depending on term, fixed or arm, type of home , etc. The programs are here to stay and although there have been some adjustments to underwriting standards, most are imperceptible to the average borrower, there are so many people who will able to borrow money to purchase that next home. The reason why investors are buying these loans is that they are backed by Freddie mac and fannie mae. With either of these government sponsored entities (GSEs) “backing” the loan, investors know that these loans have been uniformly underwritten and that a minimal yet consistent set of documentation standards have been met. This is extremely important and that is one very big reason that the rates are so low. Later this year the jumbo loan limit shoud be increased which will capture more jumbo loan applications.
 

What is loan eligibility like right now for buyers and first time home buyers in the Greenville Market?

First time home buyers are in a great position now because there are so many ways to finance a new home: FHA, VA,SC Housing, plus several agency loan programs make owning a new home a real possibility. Its easy and the rates are fantastic. Plus with current number of listings, there is a great chance that you can find that “perfect” home.
 

Where do you see the current market in Greenville SC headed going into 2008?

MLS data shows that the upstate has been appreciating at a very respectable yet stable pace. Before September the data reflects that 2007 has been a steady year with a slight slow down but nothing to be overly concerned about compared to other Southeastern markets. Greenville is a wonderful place to live with a variety of housing price points, styles, and “sub” communities. Housing starts and cancellation rates indicate that there may be a slight decrease in supply for next year and they may help bring the prices up a tad. All in all, we view 2008 potential on par with 2007.
 

Do you have any advice for current home buyers or even sellers for that matter?

Its very important to work with a loan officer that will try all the outlets available for you, Government, agency, bank related etc. With the ever changing landscape, you will need to work with a loan officer who has experience but yet not afraid to try new things.

 

Any final thoughts?

This is a fantastic time to be in the market to buy a home: low rates plus a wide variety of homes. The jumbo loan issues will be resolved sooner than later and that market segment will enjoy a rebound. The sellers out there need to hold the course if they can because there can be a reverse psychology to the “buyers” market mentality. If people think this is a great time to buy….then they will buy. If a home is fairly-priced then the seller will not have to make too many concessions. Greenville is a great place to live and the economy is robust-locally. All these things are conducive to a great real estate environment. 2008 can be a good year if expectations are reasonable and there are some tough times ahead too…but the media does such a poor job outlining the true issues that it becomes our responsibility to fight that ineptitude with education and persistence.

Charles White's contact information is below if you would like to reach him to discuss financing/mortgage options. Charles focuses on service and will make himself available to you.

Greenville Mortgage Banker
Charles White
Upstate Area Sales Manager
Synovus Mortgage Corp an affiliate of NBSC
864-241-7908 ph
864-241-7919 fx

If you need Greenville Greenville real estate assistance, please contact licensed e-Pro and Greenville Realtor, Jonathan Edwards Kostyra, at Open House Realty: 864-525-0736.

 

 

 

 

 

 

 

 

 

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