About Is it really hard to get a mortbgage loan? Some folks think so, but is it really the case? According to stan Humphsries, it”s acturally easier today than it was in 2000 or 2006.
In 2000, 54 percent of applications for conventional, owner-occupied, home purchase mortgages on one- to four-family homes resulted in mortgage originations (the balance being denied, withdrawn, or approved but not accepted by the borrower). By 2006, standards were indeed looser and 61 percent of applications for conventional mortgages resulted in originations. So what happened after the bust? Would it surprise you to learn that in 2010 63 percent of conventional mortgage applications resulted in originations? That’s right, for conventional mortgages, the conversion rate between applications and originations was actually higher last year than in either 2000 or 2006.
Now, I”m not sure that it’s easier. More loans may be approved, but from my experience the banks manage to find more hoops for a borrower to jump through, and consequently, fewer low quality borrowers actually try.
Read More: http://www.cnbc.com/id/45402953?__source=RSS*blog*&par=RSS