San Diego, CA (PRWEB) April 13, 2014
Loan borrowers may be facing an un-warm welcome this year with newly implemented home loan requirements becoming stricter. Loan Love’s new article, “Strict Home Loan Requirements In Effect For 2014 (Just Updated)” helps readers discern what these requirements are and how they will affect mortgage loan borrowing in the future. LoanLove.com is a borrower advice website that offers in-depth information on home loans that experienced home buyers can benefit from in an easy-to-understand and entertaining way that even first-time borrowers will be able to grasp.
The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending news, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. This new article continues to ensure that readers are armed with the most up-to-date info when searching for the best loan.
The Loan Love article states: “Looking to buy a new home this year? If so, you better brace yourself for stricter loan requirements than what’s been seen in recent years. You can blame the bursting of the housing bubble for new rules designed to keep borrowers out of hot water. Regardless of the intent, the process has become more complicated and some potential homeowners may find themselves giving up on a home purchase for the foreseeable future.
The new changes, which were put into place by the Consumer Financial Protection Bureau, can be loosely categorized as:
- Ability to repay
- Qualified mortgages
- Rules for existing loans
- Other changes”
As presented above, the article goes on to explain how these changes have affected the mortgage loan lending process. Loan Love’s article states that borrowers are now required to follow an “ability to repay” rule, which now reviews a borrower’s eligibility to be granted a loan based on their ability to repay the loan. This new requirement was designed not only to protect lenders, but also prevent loan borrowers from being weighed down by debt.
Qualified mortgages are also a new rule loan borrowers can expect to encounter “The point of this rule is to sidestep risky practices of the past, such as mortgage terms extending beyond 30 years, interest-only payments or minimums that aren’t keeping up with interest—so-called negative amortization schedules that cause a mortgage balance to grow rather than shrink” explains the article.
Changes that have also been made are:
- Changes that require lenders to provide more information and assistance to existing home owners to help prevent foreclosure
- And new safeguards that promote transparency of information between the lender and the borrower
While many of these changes in home loan requirements may be viewed by quite a few borrowers as hampering their loan options, the fact is that a shake up in the mortgage industry is in order due to the lending practices that contributed to the real estate collapse. Not all these changes are welcome no doubt, but some are very much in favor of the borrower and even those that do not appear to be will help to benefit the real estate market in the long run.
For more information and details about the new changes and requirements listed above, click here to read the full guide at LoanLove.com.