Dan Murphy of American Eagle Mortgage

American Eagle Mortgage Corporation began in Lansdowne as a home based business in 1993. They are now licensed in twelve states and have five offices and over thirty employees. Their main office is located at 14 E. Stratford Avenue Suite 3C, Lansdowne, Pa 19050.

This growth has largely come as a result of referrals from happy clients who have experienced the satisfaction of owning a new home or the peace of mind of refinancing and lowering their monthly bills, or obtaining cash for home improvements or other desired goals.

Dan told us, “The mortgage market has changed recently and we are experiencing a national tightening of credit. If you are now or soon will be looking for a new loan, this is a good time to make sure you monitor your credit rating and are able to document your income and assets.”

In the mortgage industry for over fifteen years, American Eagle Mortgage has funded over ten thousand loans and seen this market hit many highs and survive some tough lows.
His view on “The Credit Crisis and What it Means to You”

For any American looking to buy, sell, or refinance their home, they are confronting a very different market from the one that existed just 6-12 months ago. The US Federal Reserve has already begun pumping billions of dollars into the US banking system in order to address what is clearly a credit crisis that will change how we borrow money for years to come!

What does this mean to you and your mortgage?

Sellers: Be prepared for a 15% - 30% smaller pool of qualified buyers. Now is not the time to sit and wait for the best possible price. Consult with your Real Estate Agent, who can price your home accordingly and also help ensure your buyers are pre-approved and stay pre-approved throughout the entire transaction.

Buyers: Get pre-approved by your mortgage professional. While there are a lot of great deals out there, getting credit is becoming tougher, and it's taking longer to complete a transaction. What you qualify for today could change tomorrow in a volatile market. Looking to refinance? There is no time to delay! Communicate with your lender; don't do anything that could negatively affect your credit, and make sure you get all your documentation in on time.

ARMs Borrowers: If your ARM is scheduled to reset in the next 2-18 months, schedule an appointment with a mortgage professional NOW. Whether your ARM is subprime, Alt-A, or even if you have a pre-payment penalty, don't let a default or foreclosure situation sneak up on you. Did you know your monthly payments can increase anywhere from 30% to 100% once your loan resets? Give yourself the peace of mind of knowing what your adjusted payment will be. A good loan officer can help calculate the numbers.

Borrowers with less-than-perfect credit: Many lenders have stopped offering No-Doc loans and are reducing all forms of Stated-Income loans. While it might be challenging, borrowers with credit issues need to see a loan expert. Often they have credit repair resources and other strategies to help you reach your financial goals.

Don't let the headlines get to you. While all looks bleak and scary now, there's an important concept to embrace: All markets, while cyclical in nature, are self-correcting, be it credit, real estate, stocks, or bonds. For the last 6 or 7 years, real estate was booming and riding high. The correction we're experiencing now – while it seems harsh and could get much worse – is, in a sense, "natural" and directly related to the extremely loose guidelines and perhaps overzealous lending and leveraging during the boom cycle.

This article was edited to fit the limited space available.
For more in depth information, contact Dan Murphy at dan@aemtg.com, or call him at 610-622-0524.
Visit American Eagle Mortgage Corp. at www.aemtg.com