By Marilyn Kalfus
In recent months, however, lenders have relaxed their grip somewhat as the market has rebounded and home prices have soared.
More ways to get a mortgage are in the offing, mostly for borrowers with solid incomes and strong track records. Real estate analysts also say rising rates could spur renewed competition among lenders.
“They are considerably more flexible than they were two years ago. It’s gaining steam,” says Guy Cecala, publisher of Inside Mortgage Finance, a company that tracks and analyzes the mortgage market. “If you didn’t qualify a year ago, it wouldn’t hurt to go back and find out if you can qualify now.”
Bankers remain cautious but are becoming more accommodating, agreed Erin Lantz, director of Zillow Mortgage Marketplace: “The pendulum is swinging back to more normal, but still prudent, lending guidelines. Loans are becoming a bit more accessible.”
The Mortgage Bankers Association has come up with a tool, the Mortgage Credit Availability Index, to help measure trends in mortgage availability. The index rose 7.2 percent in May from May 2012, meaning it has become “somewhat easier” to obtain a loan, said Rick Allen, chief operating officer of MortgageMarvel.com, a mortgage shopping website.
Copyright© 2015 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.
Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com