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This isn’t your Parents Loan – Borrowing Money Has a Whole New Look

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This isn’t your Parents Loan – Borrowing Money Has a Whole New Look

Finance is a part of my job but not one I am completely comfortable with or always fully understand but thats why I work with very knowledgable mortgage brokers like Charlie Christensen with EM Mortgage and our in-house broker, Marney Solle with Terra Mortgage. Both incredibly passionate about their work and crazy informed, up to date and experienced in the world of lending and all the new twists and turns the banking industry and government have imposed.

Anyone who owns a home or is in the market for one must face the new challenges of lending and re-finance. Article in the NY Times makes many great points and the most glaring is that the lending environment for borrowers has changed. Be prepared to sign volumes of documents. Your credit will be scrutinized. The reality is, Lending in 2011 has changed.

One change that protects the borrower yet makes it even more challenging for the lender is the requirement of a Good Faith Estimate. It attempts to makes closing fees more transparent.

“One key update: In the past, some closing-cost estimates were fairy tales. The new form specifies fees that can’t change between estimate and closing, fees with changes capped at 10 percent, and others that can grow more.”

The current lending environment continues to tighten the lending strings and make it difficult for buyers to get funding yet protects them at the same time. Hoping that the banks and the government find a more fair and equitable balance that protects the buyer but creates a more realistic process for obtaining a home loan.

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