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Getting a Home Mortgage in a Tight Lending Market
In particularly hot markets, such as those seen in the very quickly expanding Southwest and Southeast, cities like Atlanta that were once struggling to put up enough housing for ever increasing prices, it has now become a race to sell off all the old ones for sale. This is being accomplished in part by home mortgage packages that can include move-in incentives or even two separate home mortgages, one at the higher interest rate and the other at the lower.
However, buyers are remaining out of the home mortgage and home buying mood altogether. With uncertainty and rising inflation (driven by a seemingly insatiable demand for oil), even those who are in a position to buy a home are thinking twice about making purchases of big ticket, durable goods such as cars and refrigerators. Essentially, this home mortgage trend is influenced thus by forces that have nothing to do with home mortgages.
When looking for a home mortgage, again, it is best to stay under the "jumbo loan" value if at all possible. The well-established lending markets tend to continue favoring smaller home mortgages that have a statistically higher chance of being paid off without default.
That interest rates should rise, just as homes are coming down in price seems especially rude to many. Nationwide, home mortgage interest rates are climbing as surely as the price of homes continues to drop. Add to that a doubling of sub-prime home mortgage debt that is largely unsecured and you've got a great many houses on the market right now.
Of course, all the usuals apply: a strong credit history, a stable job and a history of paying off debts will all make securing a home mortgage that much easier. Those with a poor credit history may have to scramble around a bit and cobble a few smaller loans together into several small payments each month. Until the market nears another equilibrium point, it may be a buyers market, but it remains a banker' world when it comes to lending and home mortgages.
