Getting A Mortgage Is Getting Easier
After the housing market crash, lenders tightened their regulations and getting a mortgage became more and more difficult. Fortunately, as the market makes a recovery, it is again becoming possible for average Americans to get the financing they need to get into the right homes.
One indicator that mortgage lenders are loosening credit availability is the Mortgage Bankers Association’s Mortgage Credit Availability Index. It increased in both March and April. In fact, that index indicates that mortgage credit availability has gone up for the majority of the year.
Federal programs have helped loosen credit. Both Freddie Mac and Fannie Mae have started offering loans with as little as three percent down, and the Federal Housing Administration has taken steps to bring down mortgage insurance premiums, making home buying more affordable.
Additionally, REALTORS® have noted that lenders are increasingly willing to accept lower FICO scores. While loan applicants have needed to have a score of 740 or more in recent years, they are again seeing loans written for people with credit scores in the range of 620-740.
Ultimately, all of these signs point to good news for people hoping to purchase a home, as they indicate that getting a mortgage is getting easier. If you have been thinking about buying a home, now is the time if you want to capitalize on greater credit availability and historically low interest rates!
To ensure you get the right mortgage for the right house, contact The Barr Team. We have been serving buyers and sellers in the Southern California real estate market since 1987 and can put our decades of experience behind you, helping you get the best financing for the best house. Our top agents are committed to making it possible for you to find—and buy—your dream home in Irvine and the surrounding area.