Question:
“I’ve heard that banks aren’t lending. Is it still hard to get a home loan?”
Answer:
Short question, long answer…
Banks lost billions of dollars in the foreclosure crisis.
They’re under the microscope by the press, political groups, and politicians for any possible misdeed or mistake, big or small, accidental or intentional.
And regulations were passed recently, forcing banks to be more conservative in their lending.
For those reasons and more, banks are scared to death to foreclose on anyone. So to be sure they don’t loan to someone they may have to foreclose on later, banks are scrutinizing potential borrowers to the “nth” degree and verifying everything to the point of absurdity.
But here’s the good news…
Rates are ridiculous, as in ridiculously LOW, in the 3-4% range. So many people qualify who would not have before.
And as much as banks are scrutinizing people, they are definitely lending like crazy to qualified buyers. They just have to prove they’re qualified.
