Mortgage Requirements Getting Stricter

As worries continue to grow over the economy and housing market, home buyers are not hesitating making the move into new homes in Amarillo. Those looking to purchase a home in our area may find more obstacles ahead.

Local realtors say because of relaxed lending over the past year, buyers will have to provide more information and money when it comes to buying a home. Realtor David grimes said, "They are requiring better credit scores. The fact they want them to have something to invest in their purchase, so the minimum down payment has come into play".

First-time homeowner Holly Chadwick doesn't believe a down payment makes a difference.   "The amount we put down would of only taken 2 or 3 dollars more off a month. Unless you have a huge amount it's not going to make that big of a difference," Chadwick said.

Realtors say last year several programs allowed buyers to avoid down payments and since the downturn in the market, lenders are taking away those programs requiring at least 3% down on a home.