Obtaining a real estate loan has grown more difficult over the last few years. The state of the economy has been a direct contributing factor, and for many people, buying a home seemed a grim prospect. There’s good news. Now there are ways to overcome this difficulty and purchase the home you’ve always wanted.
Lenders are taking a different view from other organizations when it comes to loan approvals. Even though the economy is improving and the housing market is on the rise, home buyers are still finding it hard to obtain a loan. Now the home mortgage execs are working to make it easier. Though a whole new set of lending rules is on the horizon, it is now becoming much easier for qualified conventional borrowers to secure a loan. The process is also speeding up, thus decreasing the amount of time that lapses between applying for the loan and actually getting it. Even better? This is expected to continue.
So how do you go about finding those lenders? Do your homework. Instead of just going with the first company you find or the one that was recommended to you, look around. Talk to other home buyers to find out how long it took them to get their loans and who they used. You’ll get a lot of information, some telling you it took forever to be approved, while others will be able to point you in the direction of a lender who would be most likely to help.
If you apply for a loan and are turned down, find out why. You should know the reason before applying for another. Keep in mind the process of buying a home is very involved and can be quite lengthy. Though it takes time to check out other companies, doing this will help shorten it over all. Taking the time to look around will serve you well in the future and really pay off in the long run.
Lenders said 2012 was quite busy, especially where refinancing was concerned. This was due to regulatory changes that helped borrowers move into FHA loans and was also a result of extremely low interest rates. Now, in 2013, the purchasing side is looking up and more lenders are approving loans. This is great news for both buyers and sellers as it means homes will be bought and sold more quickly overall.
Get your finances in order. This is the best way to be approved for a loan. The more financially sound you are, the more they’ll consider you.
So, to put it into perspective, now just may be the perfect time to buy and sell. A quick loan will mean less time between making the offer and actually closing on the deal.