Banks are being overly cautious in their lending practices, requesting that borrowers have perfect credit scores and not being lenient when borrowers find errors on their credit report by giving them a chance to fix the errors. With extra layers of the process being created and extra checks being carried out many mortgage loans are falling down and many purchasers not buying as the process is taking too long or is too bureaucratic. Also owners wishing to refinance to prevent foreclosure are finding it hard despite being well qualified and having good credit. NAR has called for the banks and lenders to work with borrowers in making a loan and making products more available.
Of course, no body wants to see a return to careless lending practices but a little free up of capital in the market is in need to ensure that housing recovers in a timely fashion. NAR’s Chief Economist Lawrence Yuan estimates that is rates stay around the 5% range where they are currently, there could be a 10-15% increase in home sales in 2009!
If you are looking to purchase a property in New Albany, Gahanna, Blacklick, Westerville, or another Central Ohio community, please contact The Raines Group. We offer professional real estate advice and are happy to help you achieve your real estate goals. Please contact us today via our online contact form or by calling The Raines Group at 614-418-7417