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Harder To Get A Loan With Good Credit
Saturday, March 15, 2008
The mortgage market continues to change, and not for the better. The decrease in the stock prices of the two major government back loan providers Freddie Mack and Fannie Mae are making it harder for people to buy new houses. Investors who purchase mortgages from Fannie Mae and Freddie Mack are showing starting to not purchase their loans. Investors are unsure of the mortgagees that are being offered to them. They are scared the home owner is going to stop making the house payments and they will be left holding the bag. If investors stop purchasing loans then people will not be able to get loans, even if you have good credit. This is a very large deal if you have been waiting on the sidelines to buy a house. If you are waiting to purchase a house until you see the real estate market hit bottom, you also need to pay attention to the lending world. It is possible the real estate market could bottom and then you would not be able to get a loan.