Is it getting harder for people to get approved for a mortgage?

Question

I here that it is getting harder for people to qualify for a mortgage loan.That a lot of guidlines are getting tighter. Who now knows the real scoop on the mortgage industry. Who qualifies and who don't? Is investment properties harder to get whats the deal. I believe people talk to much to scare consumers. If so I understand because there are lots of forclosures so banks are trying to avoid those deals. And bring more stable ones.

Answer 1

It should have never became easier and there wouldnt be such a bubble. Guidelines have tightened a bit and need to tighten a bit more still. Then some of the crooks might exit the mortgage origination game and borrowers will get more ethical service. Rates are meaningless to people that have no intent on making their payments. Stricter guidelines used to screen away most 1st payment defaults. Loans used to never exceed 97% ltv with most preferring 90% as a maximum. When people have nothing of their own at stake they become reckless. This cashing in on artificially created, easy equity, has set a financial trap many won't escape from. Additionally the current lending situation has effectively allowed Chinese investors to buy out our security under the guise of homeownership for most Americans. Thanks Washington DC for selling out America and profiting off of what our forefathers tried to prevent.

Answer 2

Yes the requirements to obtain a mortgage is sort of tightening, especially for those that are in the sub-prime area of the industry. Where as before you could get what is commonly known as a no income no asset verification the lenders might still allow the no verification of income, but now want to have at least 2-3 months of seasoning of your mortgage payment in some type of bank account you have. Seasoned mean it must be in the bank for at least two months, though some will go with just 2 months

Those with excellent credit scores and good debt paying habits will not normally have a problem as they will not notice any drastic rule changes for them as most have the items necessary any way. They normally have money in the bank, savings accounts, and their debt is not excessive compared to income.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

Sub-prime lending (aka bad credit lenders) has become much more difficult. Many of these lenders have taken a financial beating in recent months, and hence have tightened their lending guidelines.

Answer 4

IT is getting harder big time you think the consumers are scared try being a lender They are reporting record losses and there stock is dropping big time, there are a few already declaring bankrupts.