Being approved for a mortgage is more difficult now than ever.
Even people with sound credit have been rejected for loans.
Lending standards for mortgages have tightened so considerably that "the bottom third of people who might have qualified for a prime mortgage a few years ago, cannot qualify today," Federal Reserve Chairman Ben Bernanke said recently.
Roughly one-in-four mortgage applicants was denied in 2010, up from about 18 percent in 2003, according to data from the Federal Financial Institutions Examination Council.
Those are just the ones that apply. Many potential borrowers are discouraged and don't even bother to apply.
There is money to lend, however.
According to a recent CNN article, Bob Ryan, the acting commissioner for HUD, said that mortgage money "is flowing, it's stable, it's tightened from the boom years, but it's there."
Many potential home buyers sitting on the sidelines are qualified as long as they take a few crucial steps.
Read the full article here: http://money.cnn.com/2011/07/05/real_estate/mortgage_underwriting/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29
Agent, Keller Williams Realty Coeur d'Alene