Why Is It So Tough to Get a Mortgage

Why Is It So Tough to Get a Mortgage?

Mortgages are often seen as something that are all but impossible to acquire, and while they may be difficult there are ways to increase your chances. 

Home buyers today are caught between a rock and a hard place. Rents are rising nationwide and taking a huge portion of people’s paychecks–meanwhile, home prices are on the rise as well. Still, many people will tell you that it’s better to own than to be throwing away your money on rent. And if you can save enough money for a down payment, it’s definitely recommended you take the plunge and purchase a home. There’s a catch, though: you first have to get a mortgage.

More regulations mean more work.

After the housing bubble burst in 2008, the federal government put new rules and regulations in place to make sure that the faulty mortgages and bankers didn’t crash the economy again. In some cases, that’s led to hundreds of pages to mortgage documents. It takes twice as much time to do a mortgage than it did just 5 years ago.

Buyers need very good credit (like, stellar credit). 

Mortgage issuers want to make sure that their clients won’t default on their loans like they did in 2008. A way that they determine your ability to pay on time is by looking at your credit score. The higher your number is, the better.

Interest Rates are Low

Interest rates  are at historic lows–which is great if you’re a home buyer! But not so great for mortgage makers. With lower rates, they’re making less money per loan and the lenders’ costs have gone up.

If you’re ready to talk to a mortgage lender about becoming a homeowner, contact me, Andraya Coulter. I serve the Bay Area and the entire states of California and Texas with quality home loans and dedicated service. I’m here to be your partner as you buy your first home. Call me today!


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