Recent trend: Banks increasing loan value
Homebuyers trying to get approved for a loan to purchase one of the houses for sale in Seattle may be on the receiving end of a recent development. Following the housing crisis, getting approved for a loan became significantly more difficult than in previous years.
Even consumers with good credit were having difficulty. However, the recent increase in consumer confidence, improved employment rates and decrease in foreclosure or delinquencies has lenders adapting to the new climate, according to The Wall Street Journal.
Loans that closed escrow by banks and mortgage lenders in February 2012 had borrowers with an average credit score of 750 and an average loan-to-value ratio of 76 percent, up from 740 six month earlier, reports the news source. The consumer with a denied loan had an average score of 699 and a loan-to-value ratio of 83 percent.
While financing is still difficult to obtain, statistics are showing a recent trend of increased loan values. The median home price of resale houses in Seattle were $237,250 in January 2012, according to DataQuick. To increase the chance of obtaining loan approval, a buyer can work toward a higher credit score and save money to put down a large down payment for a property.