Despite the News, Qualifying for a Mortgage is Not That Difficult

The past 3 years have seen some radical changes in mortgage lending. More documentation requirements and closer scrutiny by lenders have led to a number of realtors, home builders and home designers to all sing the same song. They claim that the new lending rules make it tougher than ever to qualify for a mortgage. However, there is one expert who is singing his own song.

Information from Mortgage Disclosure Act

An economist for the real estate website Zillow reviewed numerous transactions from the Home Mortgage Disclosure Act. This legislation keeps tabs on 80 percent of the mortgages offered all across America. His findings were quite shocking.

He stated that just over 54% of home applications resulted in a conventional home loan back in the year 2000. As lending rules relaxed the number of conventional loans increased to 61% of applications in the year 2006. Guess what happened in the year 2010? The number of applications that resulted in a conventional loan IMPROVED to 63%.

Persuading Borrowers to Apply

However, some realtors feel that the general attitude of homebuyers is still having a negative effect on the overall market. Although the numbers from the Mortgage Disclosure Act don’t lie, the decrease in home purchases is also a glaring piece of reality. Fewer people feel persuaded to try and even apply for a home loan. Considering the fact that getting a conventional loan is still a reality this news should arm realtors and builders with real facts to help potential buyers understand that banks are still lending and are willing to help deserving borrowers get into a home.

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