I've been telling people that 2011 was going to be a year of change. And sure enough, it seems as though each week changing regulations and economic developments are having an impact on the mortgage industry. What this means for consumers is that now - more than ever before - it's critical to work with a trusted partner that's on top of the issues. Here are some of the biggest factors at play:
QUALIFICATIONS ARE CHANGING - AND CHANGES ARE BEING ENFORCED Here's a great analogy: Imagine if police officers started to hyper-enforce the speed limit and issued tickets for drivers going .01 MPH over the limit. Today, that's how mortgage rules are applied. Documentation of credit history, credit scores, employment history, income and the amount of cash on hand is closely scrutinized. The good news is that there are a variety of financing products available and we can find the best product for each client's individual financial situation - even if a client doesn't have a credit score above 740.
AFFORDABILITY AND INTEREST RATES Interest rates have indeed been creeping up, but home prices have been continuing to trend down in many locations. So, while rates are no longer at the lowest point, the combination of historically good rates plus great affordability still equals a fantastic buying opportunity for many people. If you're considering refinancing, or if someone you know is thinking of buying or making a move, contact us. We're always happy to "run the numbers" so that a client can assess their options.
ECONOMIC INDICATORS Political unrest, natural disasters, rising crude oil prices, unemployment rates, GDP, speculation about the future of Fannie Mae and Freddie Mac and the nation's deficit all have an impact on interest rates, and sometimes even result in rates that change significantly over the course of a single day. It's important to work with a lender like RMG that has the perspective to make sense of all of these national and international factors, and the expertise to know what it means for our clients.
RULES AND REGULATIONS The Dodd-Frank Financial Reform bill has resulted in a number of changes to the mortgage industry. But, in some cases, rules and regulations that were just enacted in January have already been repealed or changed. It takes a lot of energy to stay on top of all the changes, but that's exactly why we're here.
Have questions about your individual situation or about any of these industry issues? Give me a call at 952.417.8484 or drop me an e-mail at sam@loanonahome.com.
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