SANTA MARIA, Calif. - In today's housing market, the American dream may only be just that...a dream.
Can home ownership become a reality for the next generation? There's no doubt that buying a house now compared to 10 years ago is much more difficult. And according to some real estate agents, being able to buy your own house may require a lot of patience.
The main difference between buying a house 10 years ago to buying a house now is the amount of caution lenders take to make sure a buyer is qualified for a loan. Whereas a potential buyer 10 years ago could qualify for a loan even with subpar credit, a buyer now must go through many levels of qualifications. Real estate agent Shea Hutchinson echoes that sentiment.
"Lending criteria has obviously become much more stringent than it was during the boom when just about anyone could get a loan," says Hutchinson.
The first step a buyer takes is to apply for a loan. Then, if the buyer qualifies for the loan based on the application, they can make an offer on the house. Once the offer is made, that is when an intense background search of job history and credit history are performed.
"Everything is very scrutinized and things are checked out time and time again," says Hutchinson.
For new buyers in the market, qualifying for a loan can be tough if you don't have a substantial amount of money saved up even if you have good credit.
"There does have to be some type of savings in place to go in conjunction with the strong credit and job history," says Hutchinson.
Hutchinson also says the availability of homes nowadays is much less. The competition to get one is stiff. But he says not to give up hope.
"The American dream is a little bit harder to achieve but its definitely attainable," says Hutchinson. "It's just going to take patience and persistence."
