California Ranks 5th in “Healthiest” Borrowers

So what does "healthiest borrowers" mean? California has one of the most financially healthy crops of would-be mortgage borrowers in the nation. Our Golden State ranked 5th when cosidering credit score, loan-to-value ratio and other factors in the second quarter. Mortgage applicants here had an average credit score of 679 and the average loan-to-value ratio of 85.6%. Washington D.C. ranked the 1st, New Jersey, Hawaii and Massachusetts all rounded in the top five.

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By default, mortgage lenders have been seeing more qualified loan applicants because tight lending standards have discouraged "marginal borrowers" from entering the housing market. Before the recession, lenders would issue home loans with little or no documentation. Now, financial documents are heavily scrutinized.

There has also been a trend of would-be borrowers trying to increase their credit score, which plays a part in not only qualifying for a mortgage but also determining how much homebuyers pay for a loan. U.S. borrowers increased their average score by 10 points since a year ago. Real Estate Professionals advise clients to avoid racking up new debt before buying a home and keeping finances in check.

I'm happy to introduce you to a few good lenders for San Diego, just send email with subject "Great Lenders".

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