Is Getting a Home Mortgage Still Too Difficult?
It's important for potential homebuyers to know mortgage lending standards and the level of difficulty faced when trying to get a mortgage. While it's easier to get a mortgage now than it was a year ago, due to credit availability expanding, the market is still tight. Homebuyers will need to do their research to find the best lender for their situation.
What Has Happened to the Number of Mortgages?
The number of mortgages given out has significantly dropped due to the strictness of the lending companies' requirements. According to the Housing Financial Policy Center at the Urban Institute, there were 6.3 million fewer mortgages in 2015 than in 2009.
Mortgage companies won't give a loan if they determine a buyer is too risky. They calculate this risk based on information like credit history, which shows the company how frequently a homebuyer repays their debts.
What Impact Does Credit History Have?
Mortgage lending companies are known for their high standards, especially when it comes to previous financial activity. Because of this, it's important for everyone on the mortgage to have a strong credit history. Lenders understandably don't want to have to repurchase unpaid loans or end up facing legal action.
The Effect on the Economy
With fewer potential homebuyers being offered loans, the housing market isn't recovering as quickly. This also has an impact on other industries like home goods and construction. Still, the market is moving in an overall positive direction.
Maximize Your Odds of Being Approved
Due to the housing market's boom and bust, mortgage lenders now have more strict standards for lending. While it's not impossible to get a mortgage loan, it can be difficult for potential homebuyers. To maximize your chances of getting a loan, keep your credit history clean and ensure you are in good financial standing. Don't forget to research multiple companies and their requirements to increase your odds.