Banks are narrowing credit guidelines. Here’s what that means.

Banks… are they still providing loans? Recently, there have been many headlines about banks constricting credit guidelines. 

Some are raising the minimum credit score and requiring more money down. The minimum FICO score used to be 580 for a loan, now it’s 620. That means we’ll have fewer buyers in the marketplace. This also means that if you’re considering selling your home, the sooner the better because you want to entice the buyers still available. Inventory is currently low nationwide, so take advantage of this market while you can. 

Also, jumbo mortgage loans are much tougher to get these days. Some banks are still providing them, many have stopped though. If you need jumbo financing, you should get it now.

If you’re a buyer, and are considering waiting to see what happens with prices, that is an option. Another option is that you may not qualify for a loan if the banks continue to narrow lending standards. You can lock in low interest rates now and pay almost the same amount on a mortgage payment as you would on a rent payment. 

If you have questions about your situation or concerning real estate in general, give us a call 602-738-9943 or send an email. I look forward to hearing from you soon.