"Lending for home purchases hit a 12-year low of $404 billion last year, down
from $1.4 trillion in 2006, according to trade publication Inside Mortgage
Finance. That means mortgage credit is tighter than it was even before the
housing boom. This year, lending is expected to drop even more, according to Inside
Who does the current lending climate benefit?
1. Approved Buyers, low interest rates and a buyer's market mean better deals on real estate.
2. Landlords, rents are at all time highs in most cities "High rents, tight credit put many at the mercy of the market"
Who does it put at a disadvantage:
1. Sellers, less of a buyer pool means longer days on market and more competitive pricing to win the buyers.
2. Renters, in a lot of cases it's cheaper to buy than rent (see link "High Rents..." above)
3. Willing Buyers, who can't qualify for a loan must rent.
4. Loan Officers and Realtors, they don't get paid if deals don't close. Don't blame them, listen to the them. They are there to help navigate you through the mountain of red tape to get approved. They want you to close too.