Review of Jason Lange‘s: ”SPECIAL REPORT-Well-to-do get mortgage help from Uncle Sam.” (Lange 2012). SPECIAL REPORT-Well-to-do get mortgage help from Uncle Sam.

Everyone knows that banks have been going on a non-approval frenzy for home loans since about 2006. Well now its 2012 and its even worst. Banks won’t even touch your file with a ten foot pole. Not only are mortgage rates at historical lows, but home prices are very low as well. Now is the right time to get up and purchase your dream home. Nice try! In order for most people to purchase a home, you must acquire a mortgage loan first.

The average American would probably make an appointment at their local bank to ask for a loan. Unfortunately, it doesn’t matter if you are wearing your lucky socks today or if you saw a penny and picked it up. You’ll most likely walk into your local bank for a loan and leave empty handed. No, a trip to the ice cream shop will not make you feel better. This is probably one of the biggest disappointment you will receive in your life. This is worst than not getting picked for the cheer leading squad or the football team. This is even worst than not getting asked to the prom. This is a disappointment that occurred in your adult life. You were merely trying to set your roots down for your family. Now you have to go home and think of a plan b.

You had a better chance at getting a loan if you had a credit score of 840-850 and a hefty down payment. Unfortunately you don’t so you are out of luck. Before wasting any of your vacation time or lunch break to go to the bank and get denied for a loan, consider other options that have proven to get more approved loans than banks. The options that I am referring to are Fannie Mae, Freddie Mac and FHA.

“In Santa Clara County, the center of the global tech industry and one of the wealthiest places in the United States, most home buyers get help from the government, an analysis of government lending data shows. The same is true in other wealthy enclaves such as Nassau County, outside New York, and Arlington County, outside Washington, the analysis of more than 50 million loans finds (Lange 2012). Thanks Fannie, Freddie and FHA. The cut off loan amount was $417,000 in 2008 for Fannie Mae and Freddie Mac but since then, the loan amount has been bumped up to $729,750.

“Campbell’s district, for example, makes up part of California’s Orange County, a high-priced area where the data showed roughly eight in 10 new mortgages were backed by Fannie or Freddie in 2010. In well-to-do Plymouth County, Massachusetts, which leans Democratic, Fannie and Freddie backed about two-thirds of new mortgages in 2010 (Lange 2012). That means only 2 out of ten mortgage loans in Orange County are from banks. Had there not been such government programs such as Fannie, Freddie and FHA, could you imagine what a worst situation this country would be in? I understand the concept, “fool me once shame on you, fool me twice, shame on me.” Although I do recall the government bailed out banks, thus giving them a second chance. Banks have always been at risk by lending but now is when the entire world needs them more than ever. I think banks should give Americans a second chance. With all the money that banks have, they can afford to take risks.

Lets face it, we cannot count on banks to help us get a mortgage loan. I know a lot of real estate agents require or at least ask new clients if they have already been approved for a mortgage loan. If your client hasn’t been approved for a mortgage loan, don’t abandon them. Lead the client to a government backed loan like Fannie, Freddie and FHA. Your client will have a way better chance at getting a loan through government backed loans. Its hard enough getting new clients. Don’t lose out on a sale by letting them make a mortgage loan decision alone. This is one way you as a real estate agent can go above and beyond. Your service will not go unnoticed. You can be sure to receive referrals from anyone you aid in obtaining a mortgage loan.

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