Talking Points …
- The U.S. mortgage-lending landscape has changed from the height of the real estate cycle, when many lenders generously offered zero-interest terms and no-down payment loans. Now, the situation is much different. Most lenders have more stringent lending guidelines, and now require more documentation from borrowers.
- Mortgage rates are near historic lows, hovering around 5 percent. However, it’s unclear how long such rates will last, as rates are heavily affected by many factors, including the future of government-backed lenders Fannie Mae and Freddie Mac.
- Lenders have increased the amount of documentation borrowers must provide to obtain a mortgage, such as documentation of income. Processing times also have increased, making it particularly difficult for self-employed borrowers who have trouble providing proof of income.
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