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Bob is always looking for news about Katy Texas and the surrounding areas. Please e-mail me at bobgilbert2003@msn.com with any news you may feel needs a forum!
Mortgage Issues and Katy Texas!

It seems that every new client we have starts out by asking us two questions...how is the real estate market in Katy, and how have the mortgage issues effected the market? First, the mortgage issues are a problem for every area of the country and almost all price categories. In Katy the effects are felt in the first time buyer market at well as the very high end our our market. The first time buyer market is hit hardest here because we no longer have mortgage companies willing to speculate on buyers who have no previous history of paying back a loan of this type. They higher end of the market is having issues because many traditional lenders are not willing to do large (known as jumbo) loans. These type of loans are very risky in other areas of the Country like California and Florida.

Fortunately in Katy, especially in the area of Katy south of I-10, the majority of the loans do not fit into either category. We only have a few small first time buyer neighborhoods...and they do very well because few risky loans occurred in this area, and most of the jumbo loans done in Katy are for relocation clients who have guaranteed bank financing with input from the company they work for. THE MARKET FOR KATY SOUTH OF I-10 IS QUITE STRONG!

Area's of Katy north of I-10 have many more first time buyer issues because a majority of the neighborhoods fit into this category. The risky loans and poor practices (especially those used by some of our new construction builders to put people in homes they really could not afford) will have a negative effect on the northern of I-10 area for some time to come.

 Like the rest of the Country, a shake out of bad mortgage agents (like many mortgage brokers) and bad real estate agents will in the long run help correct this situation. It also will be a good time to buy a home, as we will likely have a ready supply of homes, some offered by banks and foreclosure companies available at very attractive prices.

As always it will be important for you to have strong representation from your Realtor, Mortgage Company, and Title Company.

Published Saturday, September 01, 2007 9:43 AM by Team Dever

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