The sub-prime loan mess has created a problem with all mortgages. Lending issues, in conjunction with an already slowing real estate market, have serious implications for you as a buyer or seller.
Most purchasers require a loan in order to buy a home. The mortgage crisis has caused a rise in interest rates, especially those above $417,000 (known as “jumbo loans”), and lending conditions are increasingly stringent. Almost every day, I hear of sales that fell out of escrow because the buyer could not qualify under the new requirements.