5 Simple Graphs Proving This Is NOT Like the Last Time

With all of the volatility in the stock market and uncertainty about the Coronavirus (COVID-19), some are concerned we may be headed for another housing crash like the one we experienced from 2006-2008. The feeling is understandable. Ali Wolf, Director of Economic Research at the real estate consulting firm Meyers Research, addressed this point in a recent interview:​"With people having PTSD from the last time, they're still afraid of buying at the wrong time."There are many reasons, however, indicating this real estate market is nothing like 2008. Here are five visuals to show the dramatic differences.

1. Mortgage standards are nothing like they were back then.

During the housing bubble, it was difficult NOT to get a mortgage. Today, it is tough to qualify. The Mortgage Bankers' Association releases a Mortgage Credit Availability Index which is "a summary measure which indicates the availability of mortgage credit at a point in time." The higher the index, the easier it is to get a mortgage. As shown below, during the housing bubble, the index skyrocketed. Currently, the index shows how getting a mortgage is even more difficult than it was before the bubble.

So, What does a mortgage broker do?

• checkServes as the middleman between the lender and the borrower, and handles the process of securing the loan and gathering the considerable paperwork involved.
• checkCompiles all the necessary paperwork, including credit reports, bank statements and employment history for borrowers purchasing or refinancing a property.
• checkIs able to anticipate problems that could surface during the application process, and formulate solutions to solve any potential issues.
• checkCan determine which issues might create difficulties with one lender versus another.

A mortgage broker essentially has two really important jobs:  first, to help you find the best loan product and mortgage rate for your home purchase, and second, to guide you through the qualification and loan approval process.

Brokers use their arsenal of bank and mortgage lender connections - as well as the wholesale prices they get for those relationships - to shop around on your behalf. They'll look to find you the best loan product for your unique credit, income and home buying situation, and they'll assist in obtaining the lowest interest rate possible.

While your loan will be underwritten through the wholesale lender, your mortgage broker will spearhead the entire mortgage process, and work directly with their Account Executive, who acts as the liaison between the Broker and Wholesale lender, to .ensure your loan is processed quickly and efficiently.

At GTG Financial we carefully select the Wholesalers we choose to work with based on performance, efficiency, pricing and overall customer service levels, and the Account Executives that truly partner with us to help us deliver the best client experience.

We are extremely selective, and so proud to have aligned ourselves with one of the top wholesale lenders, Cardinal Financial,  who received the vote of 2019’s best Account Executive, by GTG Financial’s staff.

A Mortgage Broker Can Save You Time and Money

Hiring a mortgage broker can help relieve some of the stress and loan-related questions when you're buying a house, especially if you're a first-time home buyer.  Working with a mortgage broker has advantages over going directly to a lender to obtain a mortgage. Consumers can save money during the process, obtain more loan options and have someone explain the fine print to them, which can save time. The mortgage industry is changing constantly and a good mortgage broker can help a homeowner understand the lengthy process from getting a good interest rate to paying lower fees to closing the loan on time. A mortgage broker is a mortgage expert who knows how to navigate today's mortgage market and to get loans closed, and can quickly determine the best lender for each individual borrower.