In Post-Meltdown Muddle, Lenders Tighten Standards

I read this article this morning and felt like it did a good job of summing up what my buyers are going through in securing home loans.  One thing that it doesn’t touch on is the issue with getting loans for CONDOS.  If you are thinking of buying a condo before the prices increase any further, talk to me about the best strategies to obtain a loan and which complexes are “loan friendly”.

As a consumer with good credit and a 10-year history of paying his mortgage on time, Ed McLaughlin expected that his record would put him in good stead with his bank.

But when he approached his lender, Charlotte, N.C.-based Bank of America, about refinancing his existing mortgage or qualifying for a new loan, McLaughlin felt like a brand-new customer just off the street.

“They said new banking laws required that I jump through all the hoops, which I thought was a little odd because my record with Bank of America had been good,” said McLaughlin. “All the new paperwork, all the new guidelines they were now required to administer. All that was going to complicate it.”

McLaughlin wasn’t being singled out—he was simply finding out firsthand how the residential mortgage industry has changed since the housing meltdown. After a period when too many lenders focused just on getting people into homes—and not on whether they could afford them—the pendulum has swung back in the other direction.  READ ON:

http://rismedia.com/2010-05-01/in-post-meltdown-muddle-lenders-tighten-standards/

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