Economic Changes Affecting Buyers

The subprime mortgage crisis of 2007 - 2008 caused widespread economic changes. Many lending institutions went out of business, and thousands of Americans lost their homes due to foreclosure. This caused a general tightening of credit that affected consumers and businesses alike.

As a result of these and other factors, the process of buying a house in today's market is more challenging. For one thing, buyers need better credit scores to qualify for the best mortgage rates these days. Additionally, buyers with bad credit have fewer options today, because the subprime mortgage is practically extinct.

Credit has always been important when buying a house and applying for a mortgage loan, but today it's more important than ever. So there we have our first lesson for the aspiring home buyer -- you need to maintain a good credit score if you have one, or improve your score if it's low.