Recently, the real estate market has started to make strides in recovery because of different lending options that are opening up. After the credit crisis occurred in 2008 where it was discovered that there were a large amount of people living in homes that they could not afford, the real estate market took a major hit. The people that owned these homes either defaulted on their loan or try to sell their properties back and a gross undervaluing of the price they paid. Now the market seems to be turning around and if you are interested in getting into the market, look for home loans in Tucson for different options.
While it is true, the lending institutions are far more stringent now then they were before, that does not mean that the chance to own a home is any tougher. If you have good credit, can show a steady income for the past two years, have a debt to income ratio that is lower than 40%, and can show a paper trail of your financial history then you may be a good candidate for a home loan.
You can apply for a home loan with just about any private or commercial lending institution but they all have to adhere to federal guidelines. The reason they have to do this is because a loan from an individual is packaged together with a lot of other individuals and sold back to the government in one big package. The package is what the Freddie Mac system buys from individual investors in the market place. If a lender wants to sell your loan, an underwriter has to approve that your loan qualifies under the government guidelines.
Buying a home is one of the biggest purchases a person can make in their lifetime. You want to make sure that you can afford this home for the period in which you promise to pay be it a 15, 20 or 30 year period. The bank is not in the business of owning homes, but in lending money. When someone defaults on their home loans in Tucson and has to move out, no one wins. In order to keep the real estate market improving the lenders have to be strict in who they lend to as well as verifying your financial credibility.
