Capital Economics experts report a loosening credit in regards to mortgage loans

The analytics firm noted that the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the housing crisis, it has remained a constant credit score average for a year now.

Also there is a loosening of credit availability as , banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

In addition, lenders are loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”  In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV (Loan to Value).

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements.  In fact, Capital Economics points out that in November, 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Source: DSN news

Getting a mortgage? Know how Credit bureaus sell your info and how to stop trigger leads.

Stopping Trigger Leads - How Mortgage Loan Applications Result in Trigger Leads

How Credit Bureaus Exploit Borrowers Through Trigger LeadsWhen you apply for a home loan, your mortgage lender will access a copy of your credit report. What happens next is completely legal but most people don't know about it. The credit bureaus will then turn around and sell your information to third-party vendors like other mortgage companies. This is called a trigger lead.

You can stop the four credit bureaus (Equifax, Experian, Innovis and TransUnion) from selling your name as a trigger lead. It is not that hard and every bit of effort worth it. And doing so can add 10 to 15 points to you credit score.

Stopping Trigger Leads

Opt-Out - You can sign up for OptOutPrescreen . The same law that allows the credit bureaus to sell this information also requires that they allow you to opt-out of this process. Visit http://www.optoutprescreen.com/ and complete the online form. Once you do this you will not receive any pre-screened offers for the next 5 years. The opt-out request takes 5 days to become effective, so you may want to opt-out at least one week before your apply for a mortgage.

Do Not Call - You can block the telemarketing calls by registering your phone number on the National Do Not Call Registry. You can register your cell phone number as well. Do this at least a month before you apply for a loan because it takes 31 days to become effective. You can register at http://www.donotcall.gov/. Keep in mind that if you fill out an online form to shop your mortgage rate you may be giving permission for telemarketing lenders to avoid complying with this block.

Report - If you receive a trigger lead call, here is what you can do: Get the caller's name, company, and location, and ask for the offer in writing. If the caller is deceptive or evasive, report it to the FTC and your state's Attorney General. If your phone number is on the Do Not Call Registry, and you did not solicit the call, you can file a complaint on the registry's Web site (http://www.donotcall.gov/).

Direct Mail- To prevent mortgage lenders from sending you direct mail, you will need to register with the Direct Mail Association.  This will cost one dollar whether you register online or through mail. it will cost you $1.00, which can be charged to your credit card. Register early because the DMA distributes its lists quarterly, so it could take a while to become effective. Like the do- not- call registration, this registration is good for five years.