If you read The Seattle Times on Sunday you read an article that told of how difficult it was to get a home loan at this time. The writer went on to say that he was only reporting the averages. The average FICO score that was approved for a loan was 764, which was higher than the average of approved loans in November. He went on to state that this was well above the nationwide median of 711. What he does say is that this is an average. He is using these averages to try and make a point, that it is harder to get a loan. Could it be that home buyers with better credit scores are finally starting to apply for home loans? Why does the rise in FICO scores necessarily equate to a stricter policy toward home loan approvals?
On Monday the same paper reported on the front page that there seem to be more buyers out and about in the Seattle area. In Miami the average sale prices have surged 14% in the last year. More buyer activity at open houses have been reported all across the US. If home loans are so difficult, why are people starting to get back into home buying?
Which article do you believe? The first one was written by a writer that hardly ever has a good word to say about the housing market. The second article was written by a reporter just stating the facts. There are people who do not think the economy has recovered sufficiently for the housing market to rebound, so they are trying to be the bellwether of bad news. Yet the facts point to a housing market that is starting to rebound. There are neighborhoods in Seattle that are seeing multiple offers on homes that are for sale. I spoke to a fellow real estate broker today about one of his listings. A client of mine wanted to know if it was still for sale. He told me that he had two offers on it already and was receiving more calls about it daily.
Judge for yourself. Talk to your loan officer and buy that dream house you have always wanted.