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Sensible Lending in Real Estate

Most people say that the real estate situation these days is due to the pool lending practices before the proverbial bubble burst. The recession that followed that and the high unemployment rate really didn't help either. The local Raleigh movers know that people nationwide are still struggling. There are plenty of homeowners with underwater mortgages not to mention foreclosure proceedings that are happening in every state. When the real estate market changed its path, many people who thought they were going to buy homes weren't feeling confident to do so even when they had the funds. Now, the latest survey from the National Association of Realtors found out that home sales could be higher if there was a return to reasonably safe and sound lending standards.

The Raleigh moving specialists found out that sensible lending practices would permit anywhere between 500,000 to 700,000 additional home sales in the coming year. This type of activity would enhance the economy, making a major impact for some people because it would create anywhere from 250,000 to 350,000 jobs in related trades. Today's lending standards are tighter than ever, of course, in response to what happened in the real estate landscape. So even with historically-low interest rates, some people still can't get a mortgage. All My Sons of Raleigh learned that lenders are taking too long to approve applications, so deals fail to see the light of day resulting in contract cancellations nationwide.

Some lenders require extensive paperwork with lengthy back history and a hefty down payment of 20%. Only those who have the best credit scores are the ones getting the best deals in the real estate playground. The National Association of Realtors' survey found that 53% of loans in the month of August 2012 were awarded to future homeowners with a credit score of 740. To put this in perspective, the local Raleigh movers found out that only 41% of loans backed by Fannie Mae (and 43% backed by Freddie Mac) had FICO scores over 740 from 2001 to 2004. In 2011, around 75% of total loans bought by Fannie Mae and Freddie Mac had credit sores 740 and above. All My Sons of Raleigh discovered the Office of the Comptroller of the Currency defines a prime loan candidate as someone that has a 660+ credit score. The average credit score denied an application is 669 according to FHA.

What does sensible lending mean to you?