Bubble Alert! Is it Getting Too Easy to Get a Mortgage? | Matthew Stewart Real Estate Team | Roseville | Granite Bay |Rocklin

Bubble Alert! Is it Getting Too Easy to Get a Mortgage?

There is little doubt that it is easier to get a home mortgage today than it was last year. The Mortgage Credit Availability Index (MCAI), published by the Mortgage Bankers Association, shows that mortgage credit has become more available in each of the last several years. In fact, in just the last year:

More buyers are putting less than 20% down to purchase a home. The average credit score on closed mortgages is lower. More low-down-payment programs have been introduced. This has some people worrying that we are returning to the lax lending standards which led to the boom and bust that real estate experienced ten years ago. Let’s alleviate some of that concern.

The graph below shows the MCAI going back to the boom years of 2004-2005. The higher the graph line, the easier it was to get a mortgage.

Mortgage availability index

As you can see, lending standards were much more lenient from 2004 to 2007. Though it has gradually become easier to get a mortgage since 2011, we are nowhere near the lenient standards during the boom.

The Urban Institute also publishes a Home Credit Availability Index (HCAI). According to the Institute, the HCAI:

“Measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates … it is easier to get a loan.”

Here is a graph showing their findings:

Housing Credit Availability Index

Again, today’s lending standards are nowhere near the levels of the boom years. As a matter of fact, they are more stringent than they were even before the boom.

Bottom Line

It is getting easier to gain financing for a home purchase. However, we are not seeing the irresponsible lending that caused the housing crisis.

CONTACT:

Matthew Stewart Real Estate Team @ Realty World for more information regarding selling or purchasing a home.  With 18+ years and hundreds of homes SOLD success experience, we are here to help you realize your real estate goals.  This post was original from KCM – Keeping Current Matters.

The DO’S and DONT’S when getting a home loan | Matthew Stewart Real Estate

There are some clear things that you should DO and then some things that you definitely DON’T do when obtaining a home loan. Matthew Stewart of the Matthew Stewart Real Estate Team at Realty World American River Properties provides a list of the DO’S and DONT’S when getting a home loan.

There are things you should DO and then things you DON'T do when getting a home loan....
There are things you should DO and then things you DON’T do when getting a home loan….

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Matthew Stewart Real Estate Team at Realty World American River Properties has been selling in the greater Sacramento Region, including Sacramento, Placer, and El Dorado Counties for 17+ years and has hundreds of homes SOLD success experience to work with you through the process of buying and selling. Working with sellers and buyers in Roseville, Granite Bay, Rocklin, Loomis, Lincoln, Folsom, Fair Oaks, and many more surrounding cities, Matthew Stewart and his team have the knowledge and experience to get the job done for you.

DIAMOND WOODS – West Roseville CA, 95747 – Matthew Stewart Real Estate

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Diamond Woods in West Roseville, CA 95747 is a hidden gem close to everything but far enough away from the hustle and bustle you sometimes forget you’re in the city.  With its spacious greenbelts and nature preserves, to its walking and bike riding trails, to its many community parks, Diamond Woods and Diamond Creek are very special.  Learn more in the video provided by Matthew Stewart Real Estate Team at Realty World American River Properties.

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The Matthew Stewart Real Estate Team stumbled onto Diamond Creek, much like many of its current residents.  Many were living in the San Francisco Bay Area and would come up to Roseville and Granite Bay for drives on gorgeous spring, summer, or fall days.  They would venture out to West Roseville, lured by all of the aggressive new home builder advertising, but along the way they would take a turn here or there and somehow end up in Diamond Creek along Blue Oaks Blvd and Woodcreek Oaks Blvd.  Once you find Diamond Creek – you love it!  With its many nature / greenbelt areas encouraging walking or riding on the trails winding through out, and its award winning schools and parks, Diamond Creek is a phenomenal place to live.  Check out the informative video the Matthew Stewart Real Estate Team has created to learn more.  If you desire more information or private showings of homes located in Diamond Creek, Diamond Woods, or surrounding areas, including Granite Bay – contact Matthew Stewart directly at (916) 718-2979