Navigating the Banking/Mortgage world
Just two months ago the sky was falling, new Dodd Frank regulations were going to be the next undoing of the housing market. No one was going to get financed for anything, and we were all in deep trouble. Now it appears it could be easier then ever?
So what is the truth? If really is pretty simple, people with moderately good credit, building and appropriate house, in a market that supports it, with some money to put down can buy a new home today, they could 20 years ago, the could in the middle of the housing crisis and they will be able to tomorrow.
We have both types of changes going on today. Banking regulation is making sure that the mortgage lenders are more honest and detailed in the mortgage process (if you ask them, it borders on catastrophic) while at the same time the Debt to income requirements and loan to value goals are softening. No question there is way more dotting “i’s” and crossing “t’s” which ever mortgage broker I know is convinced it ruining their lives and making it “impossible” but at the same time they can get people approved today they could not last year and interest rates are still historically low.
Do not panic. While there is some whining you may have to endure, mortgage brokers like everyone need to make a living and most of them get paid only if they write loans. The good news is the government is holding them to a higher standard to make sure we do not suffer another crisis and there is more work to it, but they can either do the work, do it right, protect their customers in the process or not get paid. I feel pretty comfortable with which they will chose.
Things are good.