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New Rules Coming!

By
Real Estate Agent with Keller Williams Realty Charleston

Though the government has decided to get out of the mortgage business, new rules are going to replace old ones for prospective homeowners. Lenders will now be able and will re-check credit history before final funding of mortgages. What this means is that it is a good idea to decide on the lender you wish to use, and try to use them through the entire process of purchasing a home. Lenders do not want recent credit activity that may be negative to be missed. Rules are getting stricter in other ways for homebuying, also. High cost markets will see FHA limits decrease, and mortgage insurance premiums increase.

So, if you have been on the fence about buying, it may be time to climb down and get moving. Interest rates will also creep up during the year, and indeed, has gone up three times since the beginning of the year. Start your search, do your diligence and get a good realtor. It is time.

Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Afternoon Terry

Thanks for the update. Have a great day.

Feb 15, 2011 09:14 AM
Art Hademan
Century 21 Real Estate Center - Mount Vernon, WA

Good points here Terry.

So what do you think about the government getting out of the real estate business?

Good or bad? All things considered.

Feb 15, 2011 09:16 AM
Terry Hamlin
Keller Williams Realty Charleston - Mount Pleasant, SC

Thanks, Patrick! And Art, my general view is that government meddling in private lending got us into our current mess, and now that they have created a tragic situation, they want to wash their hands of it. We certainly need some sort of solidity in backing mortgages, but the removal of 'no doc', 'interest only' and other hazardous programs will bring us back into some sanity in the real estate and home ownership dream of many Americans. We have yet to see a good bit of the foreclosures shake out, but I have confidence in the American spirit. We will come out of this in better shape. Thank you for commenting.

Feb 15, 2011 09:48 AM