Hello again. If you have kept up with the economic news lately and in particular the housing market, then you probably know that things are looking up for the first time in a while. Probably the biggest reason for this is the lack of inventory. And the law of supply and demand lives here. With little supply and plenty of demand, housing prices are moving up. Multiple offers on almost every new listing are common. So if you are house shopping - be ready if you want to buy.
Not only will you be competing with other buyers but you will be competing to get the loan you want. The following is from CNN Money:
"Despite housing's green shoots, getting a mortgage remains incredibly tough. The average FICO credit score for recently denied applications on conventional purchase loans was 729. The score on approved mortgages was 762, with a 21% down payment, monthly payments equal to 21% of household income, and total debt that did not exceed 33% of income."
This may seem daunting but actually it isn't. These "tighter" terms help create a healthier housing industry, because buyers are now required to have some skin in the game.
Getting a loan is the first part of being ready. Pre-qualifying is easy - but due to stringent underwriter guidelines, closing the loan is the most difficult part of the entire process. With the right real estate professional helping you, the waters should be smoother.