Homebuyers taking out a mortgage should find it a bit easier now. Borrowers have their best chance of getting a loan in three years, according to the latest Mortgage Bankers Association index. This trend towards easier credit standards is not what many expected when new mortgage rules went into effect in January this year. The new standards created lower profits for many lenders, so it has them looking for more ways to make money, and that could benefit home buyers.
Earlier this year, part of the slowing in the metro Phoenix housing market was attributed to tougher standards in qualifying for a mortgage. However, as of March, home sales ticked up again, which might indicate that more buyers are now able to qualify. For borrowers still having trouble qualifying, Mortgage Bankers is forecasting that lenders will loosen their credit standards even more later this year. However, we should NOT expect a repeat of the overly loose lending that led to the housing crash.
As the Phoenix area settles in to a more “normal” housing market, I think the balance of mortgage qualifying guidelines is also establishing a norm – one that allows the American dream to return, without the threat of overextending credit.
It truly is a great time to buy or make that upsize or downsize dream come true.
If you are looking to buy or sell your home, let me help you! Contact me today and we can discuss how we can meet your goals, fulfill your dreams and paint your perfect picture.
Source: Arizona Republic, 5/4/14