If it feels like mortgage approvals are harder to come by than in years past, that’s because it is.

And we’re not just talking about sub-prime mortgages for which the market has nearly vanished in just 12 months.

According to a story on Marketwatch, mortgage guidelines are more challenging for everyone to meet.

The Federal Reserve conducts a quarterly survey of senior bank lending officials and in its most recent survey, nearly half of the banks said that their respective underwriting process have tightened, forcing borrowers to “jump over a higher bar” in order to get approved.

As a home buyer and/or homeowner, you can’t do much about the banks, or the mortgage markets. But, you can make strides to make your personal application stronger and that process starts with your credit score.

If you’re planning to make a move within the next 12 months, it’s never too soon to get a credit consultation from a trusted mortgage loan officer or other financial professional. Yes, banks are now demanding more strength in income and in assets, but without sound credit history, you may be shut out entirely.

The mortgage approval process will likely get more difficult before it begins to get easier. Therefore, take proper steps to review and repair your credit (if necessary) well in advance of needing a home loan. Time heals credit blemishes and you may find that it’s the difference maker in getting a lender’s mortgage approval.

Source
Unprecendented tightening in lending standards
Marketwatch
Rex Nutting
November 5, 2007. 3:06 P.M. ET

This entry was posted on Tuesday, November 6th, 2007 at 3:51 pm and is filed under Cincinnati Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.