Lending standards aren’t fixed. There are times when it’s easier to get a mortgage and times when getting approved to borrow requires you to be in better financial standing. For prospective home buyers, that means having a higher credit score, more money in the bank, a bigger down payment, etc. The Mortgage Bankers Association tracks how available mortgage credit is with their monthly Mortgage Credit Availability index. The index measures whether standards are becoming tighter or loosening. In short, it gauges how easy it is for buyers to get approved for a loan. In September, the index found that standards have tightened. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says the market is strong, but uncertain. “Across all loan types, there continues to be fewer low credit score and high-LTV loan programs,” Kan said. “The housing market overall is on strong footing, but the data show that lenders are being cautious, given the spike in mortgage delinquency rates in the second quarter, as well as the ongoing economic uncertainty.” (source)
