It will take years before we can truly assess how far out of whack the real estate marketwas at the peak of the housing boom last decade. That’s important to remember when assessing the current state of the U.S. housing market. Lax lending standards that in 2005 allowed almost anyone to get a mortgage have been tightened. With tougher standards are we prolonging the housing recovery?
The lending standards have done a complete turnaround. We all can understand why the new standards came into play. They are a direct response to a lending frenzy dominated by no income/no asset mortgages, otherwise known as “no doc” or liar loans. Being self-employed all my adult life ,that is how I acquired many of my previous loans and I was responsible and accountable. Now I wonder when I will again be able to qualify for a home loan.
The problem now is how to find a comfortable middle ground. What is needed are lending standards that balance the need for accountability and responsibility while making home ownership an affordable option for millions of Americans. Isn’t owning a home still part of the American dream or is that dream slowly fading? The banks are so inflexible and are still healing from the collapse of the sub prime mortgage market that they remain overly cautious against risk. In the meantime, I guess we can only wait.
If you are looking Fountain Hills real estate or need to speak with a qualified lender, call/text me at 480 888 6708 or send me an email. I’ll get back to you ASAP!