Spring Lending Update with Lender David Freed | Financing Real Estate

When we need deep insight into the mortgage market, we always call our good friend David Freed at Blue Skye Lending. We checked in with him this week to see how the lending market was faring, and here are the salient points.

RATES REMAIN HIGH

According to David, rates remain stubbornly high. "They have stayed higher for longer than was generally expected," he says. "At this point, the rates are what they are, meaning everyone knows what they are and has adapted to what that means." Sadly, for some, the high rates mean that doing anything with regards to property - buying, selling, or refinancing - remains unaffordable. Anecdotally, David says many of his clients still feel priced out of the market from a payment perspective, as higher rates translate to a higher monthly payment.

THE PROCESS HAS GOTTEN BETTER

Just like the housing market, there was a time when there were so many loan candidates that lenders had options to thin the pool, i.e. the loan process became more cumbersome. Now, David says, "the lending climate is quite easy... Lenders have expanded their product offerings for those who may not have been able to qualify in the past" due to the lower demand for mortgages at the present time.

SILVER LINING

The increased inventory of available homes in Sarasota has left us with a little bit of a silver lining. The expansion of availability has lowered local demand (not quite to a buyer's market, but to a slightly-more-favorable-than-it-was-two-years-ago-for-buyers market, as we discuss in our recent market update blog), which helps first-time home buyers, as well as people who want a seller credit to help offset closing costs or who are interested in buying points (paying to lower your interest percentage).

WHAT IT BOILS DOWN TO

"It really is a mixed bag," says David. "The good news is that getting a loan is easy, while the loan itself may not be ideal." This is evidence of a shifting market, one that we hope will slowly bring the rates back down a bit over the next couple years, but as of now, the market has not shifted enough to put on that kind of downward pressure; it's put on just enough to turn the heat down a few degrees but it is still pretty warm in here.

If you are considering obtaining a mortgage or pre-approval in Sarasota and have questions, we recommend speaking with David about your options. And of course, if you have any questions about the real estate market or are interested in starting your own search for the perfect home in paradise, know we're here to help!

ABOUT DAVID FREED | Blue Skye Lending

David Freed brings more than 18 years of experience to Blue Skye Lending, including operating his own successful firm. With numerous professional references, his integrity and hard work ethic will get you the seamless results you need.

Buying a home, or refinancing, in the current market can be challenging, and it is crucial to have someone with experience to help you through the process. David has extensive industry knowledge. It spans all aspects of mortgage origination, including all government loan products including FHA, VA, and USDA, as well as conventional (Fannie Mae and Freddie Mac) loans. He specializes in working with first time home buyers, and more than anything else in the business, he loves helping people achieve this milestone.

David is highly analytical and detail-oriented. His goal is to ensure that clients are thinking about where they want to be the day after closing and working backward to ensure they get there.

[email protected] | 941.224.5803 | NMLS #263417