Now that housing prices have been dropping do you think it's easier or more difficult to get a mortgage?
Answers
3963 points
MNSL answered one year ago …
Yes it is more difficult to get mortgage worldwide than those days with all these global interees rate cut. Banks are aksing more deposits. Still they can not raise credit from the international market.
Even they do not have any hope in 2009. They also concern about rapid rise in global unemployment. This situation is going to be same even in less developed countires. There will be rapid fall in property prices in Asia pacific region in the next 18 months.
Top investmetn banks and Industrial experts think house prices to come down by more than 30% wordwide. Some even expect to come down by more than 50%.I think USA houisng market will reover before others around 2011.
4085 points
EthanR answered one year ago …
With prices dropping it becomes easier to get a mortgage, because your affordability levels improve. Lenders use a ratio of income vs mortgage amount to qualify a person for a loan. As the price of homes declines, it becomes easier for the average person to afford a home that was unaffordable on a regular 30 year fixed term mortgage two years ago.
I do agree with the previous answer that mortgage standards have tightened, however a person with good credit, some reserves, and low to moderate debt levels can still qualify for a mortgage without much difficulty.
