The real estate market has been beaten to a pulp the last five years. As it slowly starts to revive, the real question these days is can you get mortgage loans to buy a home? The credit market is so leery about real estate that this has been a real problem the last few years. Even individuals with insanely good credit have been getting shut down if they are unwilling to put down big money as a deposit. That does not bode well for the rest of us.
The relationship between mortgage loans and the real estate market is a bit like that between the chicken and the egg. We need to see one part of the market improve before the other will as well. The problem, of course, is neither will improve without the other doing so first. It is the classic catch-22.
The last time we had a meltdown like this in the late 1980s, the thing that turned around the market was insurance companies getting involved in the mortgage loan business. They brought new money to the table and loans started being issued. This sparked the real estate market into a recovery until, well, 2007.
Visit www.loanspedia.com for more information.