Qualifying for a Mortgage Is Getting Easier

If you’ve been on the sidelines thinking getting approved for a mortgage would be too tough, now might be the right time to take another look.

While the standards to qualify are still responsibly strong (and far more stable than they were before the 2008 crash), recent data shows things are easing a bit for well-qualified buyers. And that’s good news if you’ve been dreaming about buying a home here in Bellingham or elsewhere in Whatcom County.

Lenders Are Opening More Doors to Homeownership

In an effort to support market activity, banks are starting to extend credit to more borrowers, including those with lower credit scores or smaller down payments. That means more people are now getting approved to buy a home.

The Mortgage Credit Availability Index (MCAI), which tracks how easy or hard it is to get a mortgage, just hit its highest point in nearly three years (see infographic below):

The Mortgage Bankers Association explains that this rise means lenders are loosening underwriting standards just enough to allow more qualified buyers in, without getting risky like in the pre-crash days.

And that’s key.

A recent statement from the National Association of Mortgage Underwriters (NAMU) breaks it down:

“Mortgage credit availability surged in May, reaching its highest level since August 2022. The uptick signals that lenders are increasingly willing to loosen underwriting standards, providing borrowers with greater access to financing options…”

This Isn’t a Repeat of 2008

Naturally, you might be wondering if looser lending could signal another housing bubble. But the reality is very different today.

Even with this recent easing, today’s lending standards are still far more responsible than those seen in the early 2000s. Check out how current mortgage credit availability compares to pre-crash levels in the graphic below:

As you can see, we’re nowhere near the same risky lending practices that contributed to the 2008 housing crisis.

Instead, what we’re seeing today is measured flexibility, and that’s a positive shift if you’re serious about becoming a homeowner.

Brett Hively, SVP of Mortgage at Ameris Bancorp, says it well:

“This uptick is opening the door for many borrowers to move forward with a home purchase or a refinance program.”

Bottom Line

If you've been holding off on buying because you weren’t sure you'd qualify for a loan, this could be your window of opportunity.

Whether you’re looking to buy in Bellingham, Ferndale, or elsewhere in Whatcom County, the path to homeownership may be more accessible than it was just a few months ago.

Let’s connect with a trusted lender to review your current credit situation and see what programs are available to you today. You might be closer than you think to owning a home.