In some area the housing market is staying up with buyers activity and that is a good thing. because with the decrease in homes it has become hard to get a mortgage for a home now.
There are lot of homes that are going up for sale and many of them are reaching sale contracts. Los Angeles put up 16,000 homes in February and 9,000 of them have researched contracts. Now the market is bouncing back slowly.
Phoenix is another city that is just like LA. There booming with homes and closing contracts. Tighter supply has helped prices and has gotten many offers for many different markets. Supply is still a drag in many markets so, its truly a sellers market.
Sellers want to stretch their dollar as far as they can. What sellers are doing is fishing for prices that are just too much. Many home sellers are going above the appraised price and its making it hard to sell the house because there are strict guides for home mortgages.
How Hard Is It To Get A Mortgage Today
Some lenders say that its easy to get a home mortgage now but other lenders will tell you a different story. Many people that had bad credit back in the mid 2000’s still were about to get a home loan. The sad news is they ended up sinking with the housing loan they received and their house went into foreclosure.
There are new guidelines for lenders now that your FICO credit score has to be 640 and you need to have 20% down payment. So if you meet the requirements your process of getting a home loan should be a breeze.
If you’re able to pay back on your loan, because the bank is going to profit from the interest and you’re qualified for a mortgage the back is going to approve you. There are still problems though because there is a housing shortage so seller are only looking at pre-approval buyers.
Right now its turned into a sellers market because the housing demand it on the rise. However, sellers are looking for serious buyers and they will for a while. Sellers also know that they can be firm with the asking price.
Bank lenders have become smart too because they know now not to waste their time on approving someone for a home they can’t afford.
So if you’re someone that is looking to get a new house and you are financially stable and can put down 20% and have the income to pay the mortgage you will be approved for a home in your price range.