Monday, January 7, 2013

What To Expect For The 2013 Real Estate Market




In 2012 we saw home prices across the country finally reach the bottom and one thing that Orange County mortgage brokers want to know is will the real estate recovery continue in 2013 or will the real estate market relapse once again?


It’s All About Credit

Yes credit is still tight, and although the Federal Housing Administration still allows residents in Orange County and across the United States to buy a home, if they have a credit score of 700, or less with a down payment of at least 3.5%, banks are still placing more scrutiny on property appraisals and other things like bank statements and income, just so they can they can guarantee that the mortgage loan they approve will not go into default.

What does this mean for residents in this area who want to buy an Orange County home? It’s now harder for anyone to get a mortgage loan than it was since the mid 1990’s but it’s not going to be impossible for an Orange County resident to get a mortgage loan in 2013 and buy the home of his or her dreams.

Home Prices Expected To Rise In 2013

One plus side of the improving Orange County home market in 2013 is that as home prices rise, most lenders are expected to become more aggressive, and top Orange County mortgage brokers expect them to lower their lending standards, which will make the OC real estate even more competitive as more homeowners will be refinancing, selling their homes and buying second homes for rental properties.

Even though most mortgage brokers are hoping that lenders will relax their regulations, there is a fear that new regulations will hit the banking industry, as part of the recent Dodd-Frank Act, these new regulations would further tighten lending standards and make it harder for Orange County residents to qualify for mortgage loans.

To learn more about the latest mortgage news or to get a quote for an Orange County mortgage loan, contact Steven Williams at Sun Financial Group by calling (949) 699-1950.

No comments:

Post a Comment