In order to buy a house, you have to be approved to borrow enough money to pay for it. After all, not many of us have a couple hundred thousands dollars in cash lying around. So most buyers, before they start their home search, will have to talk to a lender to see whether they qualify for a mortgage. But the standards used to determine whether or not a buyer’s qualified aren’t fixed. There are times when getting a mortgage is harder and others when it’s easier. Because of this, the Mortgage Bankers Association’s Mortgage Credit Availability Index tracks whether standards are tightening or loosening from month to month. According to their most recent report, getting a mortgage got easier in February. In fact, Joel Kan, MBA’s associate vice president of economic and industry forecasting, says credit availability is at its highest point in months. “Credit availability increased to its highest level since May 2021, driven by growth in jumbo loan programs, as well as those that include allowances for ARMs and expanded credit score and LTV requirements,” Kan said. “In a period of rising mortgage rates, affordability challenges, and declining volume, lenders have made efforts to slightly broaden their product offerings.” (source)
SOCIAL MEDIA EDIT: Getting a mortgage got easier in February. The Mortgage Bankers Association’s Credit Availability Index found lending standards loosened, making it easier for borrowers to qualify for a loan.