Mortgages are still readily available in the US, but as might be expected, mortgage loan sources require full evidential documentation to support income statements. It may be a case of 'once bitten twice shy' because it is generally agreed that credit policy has been too relaxed, which largely contributed to the current crisis.
Not very long ago it would have been inconceivable to imagine mortgage giants, Fannie May and Freddie Mac, being taken over by the federal government. Equally it would be wrong for the government to proceed with policies that had created unprecedented problems. Therefore, it is unsurprising that a more cautious approach is being followed. In fact it is vital when taxpayers money is involved.
Please Click Here to visit the Free Mortgage Advice Web Site.
When credit standards are tightened up fewer people qualify for mortgages, which does nothing to improve the market. It favors financial stability, with mortgages only approved for those who can best fund repayments. For such borrowers there are bargains to be had, but unfortunately at the expense of those who have become overextended.
There are reports that the government continues to support affordable housing, whilst recognizing the need for responsible lending. It's a difficult path because it was irresponsible lending that led to the present predicament. There is little doubt that the US, and the world at large, will recover from the financial storm, but in the short term, there will continue to be credit restrictions and other hardships to endure.
Tags:
mortgages harder to get
mortgages harder to get
No comments:
Post a Comment