New rules launching early next year designed to make mortgages safer may result in less choice for borrowers.
Beginning Jan. 10, banks have to ensure that monthly mortgage payments are affordable, a result of the Dodd Frank law passed in 2010. The failure to do so carries strict penalties.Â During the housing bubble, some banks issued loans without even checking applicants' income or assets.
Under the new rules, lenders must carefully determine that borrowers have the ability to repay their loans. Lenders must carefully examine and double check pay statements, bank records, tax returns and other paperwork provided by borrowers.
If you want have been thinking of buying a new home and would like to know more about the subject please give us a call atÂ 619-665-5360 or emailÂ Jason@MetroSDRealty.com