Is It Too Easy to Get a Mortgage?

Is It Too Easy to Get a Mortgage?

One of the biggest reasons for the real estate crash in 2008 was the increased availability of mortgages. The requirement to get a mortgage in 2006 was too easy, not much more difficult than being able to fog a mirror. 

When someone asks me if we are in another real estate bubble today, or is too easy to get a mortgage, I only have to show them this chart and they will quickly understand why it is very much different now than it was in 2006.

The data for this chart is provided by the Mortgage Bankers Association, who tracks how easy it is to get a mortgage. The index was benchmarked to 100 in March of 2012. As you can see, currently, applicants for a mortgage are required to meet much stricter standards than in 2006. 

Does this mean it is difficult for home buyers to get a loan right now? The answer is no. I consider it currently to be very normal. The standards are well balanced and are right where they need to be in my opinion. 

Jon Niemeyer is the Broker/Owner of EXIT Realty North Star, 1039 Sunset Dr Norwalk, IA 50211. We provide full service real estate services to the Des Moines, Iowa metro area. Learn more about Jon at

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