Are you thinking of applying for a home loan? What are your chances? All indicators are pointing to a trend where the volume of bank approved home loans is growing at a rate that is faster than that witnessed earlier this year. This is significant considering the fact that the winter months are traditionally viewed as the slow season with respect to bond applications as well as home sales.
Home Loans On The Rise
Statistics indicate that loan approval figures have been going up from a stable 1% during the initial 2015 months to about 2% over the last few months. Analysts believe that this faster growth rate is due to a persistent increase in the number of applications for home loans from prospective homebuyers, coupled with a decrease in the number of applications turned down by financial institutions.
Loan statistics indicate that there was a rise in submitted loan applications of about 3.3 % by close of July. Statistics on declined applications by the banks came down by 11.7%, coming in the wake of a 15.6% fall over the preceding 12 months.
Get Help When Applying For A Home Loan
The general prognosis is one of a stable market where the lending institutions are upholding a strict selection process for credit, while remaining eager to expand their lending so that more needy borrowers can access loans. It needs to be pointed out that you have better loan approval chances when your application is done through a financial and mortgage institution of good standing. These institutions have higher percentages of approval rates compared to refusals from credit seekers.
Experts in the home loans industry note that continued real estate confidence has been continuously demonstrated by both lenders and buyers during the last two tough years. This is shown by an excess of 14% rise in the average home price over the duration. Over the same period, the average bond approved amounts have also risen.
It is notable that during this same period, almost 50% of those seeking home loans were first-time buyers. On average, the loans paid out for a home have risen by nearly 8 percent while bond approval rates have risen by 9%. Meanwhile, indications are that the upper end section of the home loans market has held on well with lending institutions dishing out more loans compared to last year.
Whilst the indicators are good, are they good enough for you? Are you thinking of entering the property market, but worried about whether you will qualify for a home loan? Contact Homefair or a bond originator like OOBA for more information regarding current property market trends, and how you can make them work for you, especially now that you’re in the market for a home loan.