Potential Scottsdale home buyers are cautioned to be mindful of lending standards as well as the current housing market condition. The market will still be tight, at least in the near future. Potential home buyers would do well to do some homework before making a commitment to purchase a home. This would help them to identify a lender who is willing to lend money as well as to ensure that they are qualified.
You should speak to a local loan officer (we can provide you with great lenders) prior to going out to look at properties. This way you won't have any doubts that you're looking in the right price range and you should be able to qualify for a mortgage. In fact, you would be in a much better position if you get fully approved. This is the next best thing to cash, and you need to be seen as an excellent buyer in order to get your offer accepted.
Banks and mortgage companies have many standards when approving loans. They want to be sure you can afford to pay as is. The industry is aware of the credit woes, so they are very cautious when approving loan amounts. A loan is a risky business and you don't want to be in a position where they get sued because they made an unfortunate decision on your ability to pay back the loan.
How has the number of mortgages changed?
More homeowners are not qualifying for mortgages due to stricter regulations and policies for mortgage loans by the FHA. More recently, the US has experienced a significant decrease in the number of homeowners able to purchase their own homes. The reasons behind this change in the number of people getting mortgages are strict regulations and standards placed on the government program.
The mortgage company calculates what risk it is taking on by giving a home loan to a buyer. If a lender decides that it is not going to be able to collect from the buyer, it may not give you a loan. Your credit history has a huge impact on whether you can qualify for a mortgage today.
How Does This Affect the Economy?
After the housing market boom and bust, mortgage lenders became stricter in their lending standards, making it difficult for potential home buyers to get mortgages. The job losses we have seen in Scottsdale are most likely due to Covid, but the state of the real estate market has deteriorated as well. We also still have a Seller's Market because of the high demand for existing homes and the lack
There are many great sources for finding local credit lenders and it is important to make sure you are in a good financial position (i.e. your credit score is good and you are up-to-date with payments) when applying for a mortgage so that you can be in a good position to secure a good loan deal. Using a local lender can also help with getting your offer accepted, especially if you're up against multiple offers. There are several online lenders that are not well respected by Scottsdale real estate agents. If you hand in a pre-qualification letter from one of those lenders, your offer might go to the bottom of the list.
Give me a call at 480-877-1549 for some great local lenders.Posted by Judy Orr on