Ed's Blog

The increases in conforming loan limits that we saw earlier this year are darn close to reaching their expiration date. Well, technically the loan limits (some as high as $729,750) will be decreasing effective January 1, 2009.

HOWEVER, most banks will not be accepting new loan applications for the higher limits past late November, or early December. There just won’t be time to get the loans funded before the limits change again.

So as a reminder, if you’re looking to buy, start your pre-approval process now, or else you may run the risk of shortchanging yourself on the limit of a conforming loan you are able to qualify for.

On the other hand, if you’re looking to sell, remember that because the loan limits are changing, that may very well decrease the numbers of potential buyers interested in your home. So, make sure to seriously consider reasonable offers that come your way.

If you have any questions about the reduced conforming loan limits in your area, please feel free to email me at ecraine@smithcraine.com or call me directly at 415-406-2330.