In response to rising home prices, lighter down payment requirements and new rules that limit lender’s liability have improved the playing field for today’s home buyers. This lightening of restrictions opens the door to many buyers who have been shut out of the market in previous years, providing more options across the board.
Even with lighter restrictions, we are not to the point where mortgage lending standards are “too easy” – no one wants that to happen after we learned our lesson the hard way when the market collapsed. 2015 is simply a year for better qualification opportunities.
Not to mention, mortgage rates are still hovering around unimaginable historical lows. With the grips of tight-fisted lenders finally loosening, many home buyers now have a chance to lock in their mortgage at a great low rate. Of course, the stronger your qualifications, the lower the interest rate you’ll be able to secure. Borrowers with a credit score of 740 or more and a down payment will certainly get the best rates. But even if you don’t meet those high benchmark, you can still find yourself with an historically low rate (with only an added 3.25 percentage points, at most).