Changes in Mortgage Rules Could Launch Millions of New Home Loans
After the mortgage crisis in 2007 in 2008 lenders tacked on stricter rules for underwriting and approval. But now, underwriting standards may be changing, especially those who have been locked out of Fannie Mae and Freddie Mac programs, government-sponsored programs who guarantee loans for borrowers with poor credit. These programs are relaxing some of their standards, which could potentially open the door for thousands if not millions of Americans looking to buy.
Even though the process seems to have sped up, credit conditions still remain fairly strict. This could hamper those individuals desiring to get out of the rising rental market. Underwriters and lenders still require pretty heavy duty credit requirements with high credit scores and a decent two exceptional credit history. This is not to say that distressed borrowers are those that have a lower credit score should not try to apply. Many lenders or mortgage officers can offer precise plans highlighting where a potential borrower can save, cut back or correct in order to receive a better interest rate and a better loan in six, eight or 12 months.
In addition to the relaxed credit process for loans, many major lenders are also expecting more relaxed credit score requirements as well as a reduction in the paperwork required to complete a loan, however this is not quite the case just yet.
If you think you would like to get the ball rolling and see how much home you could potentially afford or find out more about credit requirements for a home loan in the Jupiter or Palm Beach Gardens area.