If you’re doing it right, the first step in the home buying process will be talking with your mortgage lender. Your mortgage lender is the one who can tell you if you’re able to buy and how much you’ll be able to spend. Should you find a house to purchase, you won’t get very far without first going over the numbers and figuring out what you may be approved to borrow.
Some of those calculations will be determined by your financial situation, debts and income. Another variable will be based on credit standards. According to the most recent Mortgage Lender Sentiment Survey from Fannie Mae, credit standards are easing which means it’s getting easier to get a mortgage. In fact, the survey found that lenders on net continued to report easing lending standards at a modest pace across all loan types.
That’s good news for prospective homebuyers. According to Doug Duncan, Fannie Mae’s chief economist, it’s helping push expectations for this year’s selling season. Lenders’ improved demand outlook going into this spring selling season bodes well for our forecast of relatively flat mortgage volume following the double-digit drop in 2018, Duncan said.