The new year is likely to bring many Americans closer to their dream of buying their own home, as lenders are expected to
reduce restrictions barring people from receiving mortgage loans in the coming weeks. This move to relax standards and make loans more obtainable comes in response to new guidelines from Fannie Mae and Freddie Mac, that went into effect December 1st. Before these new guidelines it was often unclear what constituted misconduct with regard to lending, and for fear of accidently making a mortgage error and receiving penalties banks remained very cautious about awarding loans. These new standards clarify what banks can and cannot do, allowing them to relax their excessive requirements that had barred many people from qualifying for a mortgage loan.
Major banks such as Wells Fargo and Sun Trust predict that borrows will find the whole process much less tedious under the new guidelines, and should see the effects of these changes by the holidays. Upshots will include faster turnaround time for reviewing mortgage applications, more realistic credit score requirements and increased leniency regarding scores if the borrower sites an instance such as job loss, health problems, or any other extenuating circumstance. This could mean many people will have even more to celebrate this season, as they finally will be able to purchase the home they had been dreaming of.
For those who have been thinking about buying a property, these lesser restrictions make now the perfect time to invest. Think that South Beach or Miami might be the place for you or your business? Contact a RE/MAX agent today to check out all the best commercial and residential real estate on the market!