Things are changing in the finance world and the way lenders handle home mortgages. President Obama in mid-July signed sweeping financial services reform into law. The 2,300-page law creates an oversight agency for financial services companies and a consumer financial protection bureau. It also includes provisions to curb risky mortgage lending. Among other things, it puts restrictions on lenders' use of yield-spread premiums and requires them to verify that borrowers have the ability to repay their loans. These and other changes will have the effect of making plain vanilla mortgage loans more attractive.
Now is a good time to buy. Take advantage of the current market-- it won't be a buyer's market forever. With so many foreclosure and short sale opportunities available, buyers and investors should continue to take advantage of affordable home prices. Cash buyers especially are king right now. They can buy low and don't have to pay for any mortgage costs, saving thousands of dollars on their investment. Take advantage of the variety of loans available. There are numerous mortgage products available for all types of borrowers and their income levels that offer affordable interest rates and terms. Borrowers should take advantage now while interest rates are still low. All in all it is a great time to buy a home.
For more information on buying a home or for the 29 critical questions to ask a Realtor before you list a home, email me at fritzhoch@aol.com.
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