Pre-housing crisis, it was easy for a buyer to get a mortgage.
Post-housing crisis, banks set the strictest rules for lending the housing
market had seen in decades. Mortgage approvals were hard to come by as banks
increased their credit standards; by 2011, it took an average credit score of
750 to get a mortgage approved. According to the Urban Institute, as many as
1.2 million loans were denied as a direct result of the increase in borrowing
requirements. The banks' actions might have protected them from losing profits
due to foreclosures and short sales, but it also prevented the housing market
from making a full recovery. Refocusing
After the housing crisis, banks and lenders focused their efforts on the
refinancing side of their businesses. But with the increase in rates over the
past year, fewer borrowers are looking to refinance. And so, to boost business,
banks have turned their attention back to the housing market. By making it
easier for some buyers to borrow money, lenders are looking to increase the
demand for mortgages. Enticing Borrowers
Borrowers of Fannie Mae and Freddie Mac-backed loans will now find it easier to
get pre-approved for a mortgage due to Wells Fargo's decision to cut its
minimum credit score from 660 to 620. But the loans come with conditions;
borrowers must prove they can afford all the costs associated with home
ownership. In addition, Wells Fargo borrowers might have to explain a credit
history event or prove the stability of their employment. Smaller banks are also
doing their part to assist the housing recovery. The US unit of Canada's
Toronto Dominion Bank waived the requirement for mortgage insurance for certain
loans, along with lowering down payments to three percent. Loosening Up
According to a Mortgage Bankers Association index, credit standards in March
were the loosest the market has seen in at least two years. With more borrowing
options open to home buyers, qualifying for a mortgage is now an achievable
goal for many Americans.
We understand that for many people, buying or selling a home is probably the largest investment decision that they will make in their lifetime. Halo Group Realty LLC thus became active in selling Real Estate in 2008 and was setup to make this process a simple and painless transaction. Your dedicated agent will guide you every step of the way to make purchasing or selling your home enjoyable and exciting… as it should be!
Today, Halo Group Realty LLC is at the cutting edge of technology in offering assistance to those in need of real estate services, and we have revolutionized the method of delivering education to consumers. Halo is established as the place for consumers to get the knowledge and assistance they deserve in the process of facilitating the Real Estate transaction, positioning you in the best possible situation to get the best price when you either to buy or sell. With leadership, innovation and forward thinking, Halo Group Realty, LLC is poised to make a huge impression in the real estate market while providing clients the keys to home ownership.
Our goal is to help make your dream a reality and take away all of the stress that goes along with purchasing or selling your home. Whether you are purchasing new construction, an existing home, or just an open space for future enjoyment, representation by a Halo agent is a valuable tool in making your dream become a reality.