It’s still hard to get a mortgage (and what that means to sellers!)

Bloomberg mortgage application-550

According to the Wall Street Journal, despite an improving housing market it is still too hard for many to get a mortgage.

Between 2007 and 2012, the creation of new mortgages has dropped 90% for borrowers with credit scores between 620 and 680, and have dropped 30% for those with credit scores above 780.

Why is it still so hard to get a mortgage?

The Journal notes that weak demand for loans, tougher lending and credit standards, and low interest rates (low rates are unattractive to lenders) are among the reasons.

What does this mean for sellers in today’s housing market?

Unless you are able to attract buyers to your property with very high credit, you are likely going to go through several different buyers until you find one that “sticks” and is able to pull through and get their mortgage.  So be prepared to be frustrated, and screen your potential buyers up front as best possible so that they don’t tie your house up for an extended period of time.

On the other hand, if you need to sell your house in short time frame, or would prefer to have the certainty and peace of mind of knowing that it is sold, call us at 205-390-1050.  We buy houses in Birmingham in all different situations, and would be happy to discuss how we may help you sell your house fast.  You may also read more at our home page, www.WeBuyBham.com.

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