How hard is it to get a mortgage in 2017? Another way to ask this question is – what is the current mortgage credit availability?
Some people are thinking that it’s too easy to qualify for a mortgage today – that we’re headed for another housing bubble. And if your entire existence in the housing market has been after 2009 (i.e. you never owned a home or thought about owning a home prior to 2009), then it might look that way to you. Looking at this chart on the right, you can see that mortgage credit availability is indeed getting easier. 100% financing is available, borrowers can qualify with credit scores as little as 580, and mortgage rates are still near their all-time lows.
However, for those of you who did own a home prior to 2009, you’ll remember what it used to be like, and it’s important to put today in perspective. If we go back to before the housing market crash, you’ll see that mortgage credit availability was extremely high – mortgages were very easy to get. There were times when just a good credit score would qualify you for a mortgage – no employment verification, no income verification, nothing. Well, we know how that turned out.
So, if you’re a seasoned home buyer, know that it’s never going to be as easy as it was in the 2000s. However, it is continuing to get easier, and working with a professional mortgage lender and an experienced Realtor can help make the process feel painless and smooth.