How the Current Lending Environment Could Increase Inventory

Now, with over four years since the beginning of the “Great Recession”, it’s lisell-your-house_topkely that many would-be sellers are in an ideal position to make a move and take full advantage of the incredible appreciation that we’ve seen in the housing market.  How?  For starters, think of all the Baby Boomers who are ripe to make a move, but have been holding off due to qualifications or home values.  Also, with interest rates so low, job stability increasing and lending qualifications actually easing, it’s more accessible for X and Y Generations to move up.

The following are some very specific developments that are making lending easier:

  1. Self-employed borrowers (as a group) have done better over the last two years than 2010 and 2009
  2. Values are moving up, which will help bring some properties above water
  3. Overall household income in our area is higher than other areas in the country
  4. Low interest rates, 40-year programs and a slew of other great lending programs are making mortgage qualification easier
  5. Those who had a history of short selling or foreclosure are likely eligible for lending this year — Generally, two years must pass since a short sale and three years after a foreclosure for a person to be eligible for mortgage financing again

If you haven’t reached out to your favorite Mortgage Advisor, now is certainly the time to get his/her input on how you can help your clients make an ideal move in such an extraordinary environment.

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