Need a mortgage this month? It's going to be harder - and more expensive - to get one, according to Steve Kim of Bank of America, who spoke briefly at our tour meeting this morning.
In the past week, turmoil in the mortgage markets has caused increasing problems for home buyers in the Bay Area and around the nation.
The SF Chronicle headlined the news in this morning's paper, and featured this story:
Kurt Herrenbruck, a mortgage planner with Fishman Financial Group in Berkeley, saw one client's financing evaporate in the space of three days last week.
"The client is well-heeled, with (a high credit score), and $500,000 in the bank, making an owner-occupied purchase with a 25 percent down payment," Herrenbruck said. "He needs a no-doc loan (meaning he cannot provide documents to prove his income) because of an employment hiccup."
Herrenbruck said Wednesday he found two lenders willing to make a no-document loan. But by Thursday it was down to one. And Friday, when his client's offer was accepted, there was none. "He can't buy even though he had the strongest profile of any no-doc: superlative credit, money in the bank and a whopping down payment."
The story underscores how skittish Wall Street investors are causing a ripple effect that hurts multitudes of people buying or selling houses.
Simply put, less money is available for mortgages
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