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Columbus OH Real Estate News

by Jason Opland & The Opland Group

By Jason Opland | Agent in Powell, OH

Getting a Mortgage Not Likely To Get Easier in 2013

Credit standards for getting a loan are tight and likely won’t ease up in the new year, The Wall Street Journal reports.

“Lenders are still scrutinizing property appraisals, reams of income and bank statements, and anything else that could be used to force them to buy back the loan should it default, which means that it is more difficult to get a loan than at any time since the 1990s,” The Wall Street Journal reports. “Buyers shouldn’t expect that getting a loan will get easier anytime soon, even though rates probably can’t get much more attractive.”

Banks are staying busy with a flood of refinancing from low rates in recent months, and they’re unlikely to ease their standards when they still have plenty of business coming their way, analysts say.

Also, the mortgage lending industry faces plenty of challenges that have contributed to constraining credit. For example, several larger banks are buying fewer mortgages from smaller lenders, which have tightened credit in some aspects, the Journal reports.

Bigger lenders also have been tightening up after a rise in legal expenses and costs, as well as new rules that are forcing them to keep more reserves.

“Banks also aren’t eager to invest in building capacity because origination volumes are likely to fall whenever mortgage rates rise from their current levels, which are the lowest on record,” according to The Wall Street Journal.

Source: “2013: Mortgage Credit Likely to Remain Restrained,” The Wall Street Journal (Dec. 20, 2012)

If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in; Bexley Columbus Delaware Downtown Dublin Gahanna Grandview Heights Granville Grove City Groveport Hilliard Lewis Center New Albany Pickerington Polaris Powell Upper Arlington Westerville Worthington

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