morgtgage-denied

I don’t normally report on Boston suburban sales but I thought Scott Van Voorhris’s article in the Banker & Tradesman was interesting, especially regarding the new difficulties in obtaining jumbo loans. Here are some highlights from his article:

Despite some promising signs over the past few months, prices in roughly 80 percent of the towns and cities within the 495 beltway were still down through September compared to 2008 levels, often significantly, the numbers show.

The drop in prices come on the heels of a dramatic tightening up of jumbo lending by banks after last fall’s near collapse of the financial system.

Interest rates soared on jumbo loans, now defined in the Boston market as anything above $523,750. Banks also got a lot tougher on down payments, requiring anywhere from $200,000 to $250,000 on a $2 million mortgage.

Banks are also demanding more thorough appraisals – not to mention taking a more critical look at the income of would-be luxury home buyers.

A bank considering whether to grant a mortgage to the prospective buyer of a multimillion-dollar house in Wellesley will first want to see three different comparable sales within the past several months – a difficult standard in a down market.

And financial services execs whose bonuses might typically dwarf their income are now finding banks taking a skeptical view of such income, reducing the amount they are eligible to borrow.

“If you are buying a house in Wellesley for $3 million, we have to find at least three comps in a mile,” said Leif Thomsen, chief executive of Walpole-based Mortgage Master. “Sometimes it’s tough to prove, even though the value is clearly there.”

Author Profile

John Ford
John Ford
EXPERIENCE

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs



In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.



HISTORY

For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.

AREAS COVERED

Back Bay

Beacon Hill

Charles River Park

Downtown/Midtown

North End

South End

Seaport District

South Boston

Waterfront

Brookline

Surrounding Communities of Boston
Contact
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.




John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114

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