No doubt, the majority of buyers searching Knoxville homes for sale will need to secure a mortgage. While lending standards have been strict, it hasn't slowed the Knoxville real estate market.
Knoxville, TN (PRWEB) January 18, 2013
The Holloway Group, the leading Knoxville real estate team at Gables & Gates, REALTORS has posted a new article to their website describing the breakdown of what factors were needed to get a mortgage in 2012.
Troy Stavros, Broker and Partner with the Holloway Group stated, "No doubt, the majority of buyers searching Knoxville homes for sale will need to secure a mortgage. While lending standards have been strict, it hasn't slowed the Knoxville real estate market."
The article goes on to show the breakdown from mortgage lending services provider, Ellie Mae, as to "What it took to get a mortgage in 2012". The following are the insights:
- Average Interest Rate of 3.9%
- Average Down Payment of 21%
- Average Credit Score of 748
- Average Time of Close was 48 days
- Debt to Income Ratio on House Payment was 23%
- Debt to Income Ratio on Total Debt (House, Car, Credit Cards) was 34%
- Refinances accounted for 62% of the loans
- Purchases accounted for 38% of the loans
- 30 Year Fixed Mortgages accounted for 79% of the loans
- 15 Year Fixed Mortgages accounted for 18% of the loans
- Adjustable Rate Mortgages accounted for 3% of the loans
It went on to say regarding credit scores, that approximately 37% of 200 million Americans have credit scores to meet or exceed a credit score of 748.
Some good news for those in the market to buy or refinance a Knoxville home recently came out of the latest announcement on the new Qualified Mortgage rules, which eased the Debt to Income ratios from those stated above. That being said, stay tuned as the new Qualified Residential Mortgage rules have yet to be released. The QRM rules will be set by several different Federal agencies, such as the FDIC, Federal Reserve Board, FHFA, HUD, and OCC. These rules will be announced later this year.
ABOUT THE HOLLOWAY GROUP AT GABLES & GATES, REALTORS
The Holloway Group is committed to bringing the best possible experience to fruition for buyers and sellers of Knoxville real estate. At the Holloway Group we don't believe average is good enough for our clients. At the forefront of the Holloway Group is experience. Our team was created to serve our clients even better with specialization and expertise. We know that individually we cannot be everything to everyone so we have come together as a group, bringing all of our different strengths, so you always work with the best. We pride ourselves on being ahead of the curve on technology and how it can serve our clients. When you are a client of the Holloway Group, you can expect to have our entire team of professionals working to fulfill your individual real estate goal. As a member of Leading Real Estate Companies of the World the Holloway Group and Gables & Gates, REALTORS can assist you with finding the most qualified real estate professional to suit your needs, anywhere in the world! Visit our website to search ALL Knoxville homes for sale. Contact us today for assistance.