It has been reported that many experts in the field of real estate and mortgage lending believe that the housing crisis experienced in the United States will in all likelihood end in 2012. Experts believe that banks, having shown a trend of relaxing credit score requirements, will be able to get mortgages in the hands of more people. While credit ratings required for a mortgage home are currently averaging around 700 – which is above the average rating needed prior to the housing crisis – it is consistent with the requirements that have held for the last year. Another indicator is the amount that banks are lending to individuals. At the peak of the housing crisis, mortgage lending by banks had decreased to 3.2 times borrower earnings; those rates are currently back up to 3.5 times borrower earnings. Loan-to-value ratios are also showing an improvement and are currently up from a previous low of 74% in 2010 to 82%. While some homebuyers are still struggling with credit score requirements, many are now being able to take the opportunity that the housing crisis has presented to potential buyers.
If you are interested in purchasing a home then now is a good time to take advantage of being able to pay less and get more in an Encinitas home. Encinitas Realtor Linda Moore can help guide you through purchasing an Encinitas home for the right price.