Closing on SLU Condos

The credit crunch has South Lake Union Community member rollinst worried in a recent discussion entitled "Any trouble closing on SLU condos?"

I am (hopefully) moving into Rollin Street Flats in March when it is finished. I was wondering if anyone else here has purchased a presale unit there and if they are worried about closing on their unit? Or if anyone has advice for those of us who are. We are feeling a bit anxious at this point.

Banks have clamped down hard on loan underwriting in recent months in response to the declining housing market, making it more difficult to get a loan by requiring higher credit scores, larger down payments, and more documentation.

The usual suspects when it comes to condo buyers – real estate investors, first-timers, or those wanting a second house/vacation home – will find it even more difficult.

Prior approval could easily be meaningless now that most banks underwrite solely to the guidelines of government sponsored owned enterprises Fannie Mae and Freddie Mac.

This credit environment does not bode well for the Vulcan condo triumvirate (Veer, Rollin Street, Enso), whose preferred lender Countrywide was saved by Bank of America in January. Not to mention the fact that personal situations have likely changed for many since pre-sale. 30% stock market declines can do some damage to down payments, and reports of layoffs at large Seattle employers have become more prevelant.

Sorry if this didn't ease your anxiety, rollinst. If anyone has any experience (ie. buyers at Veer, which is now complete), advice, or opinions, head over to the forum.