So you got pre-approved for a loan a few months ago and are home shopping on your leisure. Inventory is high (this morning we had 3182 active listings in Sonoma County), you have reason to take your time. Just a warning: it might be good to talk to your lender again and find out whether the loan program you got pre-approved on is still available under the same terms. In talking to lenders (Denise is on a trip this week) I do hear over and over again that a lot of programs are not available anymore.
Banks are tightening lending standards for home buyers, even those with good credit, loan officers report the increase in stricter mortgage underwriting standards due to economic uncertainty, reduced secondary market liquidity, and less of an appetite for risk, according to the survey.
Even for prime mortgages, the terms are tightened in the prior three months for people with the best credit records. That was up from about 15 percent in the previous survey in July. About 60 percent of banks said they tightened standards on home mortgages classified as “nontraditional,” up from 40 percent in the previous survey. Should you be in the market for a new home, make sure you do your homework. Stay in touch with your lender and even more, stay in touch with your Realtor. They are there to help you.
But don’t worry, mortgage rates are still very reasonable and there are still plenty of programs available, just make sure you are educated about today’s market.
Have a great day!
Mirjam