Does the world have amnesia? I don’t understand why I am still seeing advertisements for 100% mortgage financing. Did everyone forget what happened a few years ago? What is still happening today? Our global economy darn near collapsed because of 100% financed, adjustable and seriously questionable lending practices. Why would financial instituions even consider offering mortgages of this kind? Even Fannie Mae still has a 3% down payment program. In my opinion, loans like these stand to throw consumers back into the fire that they are still smoldering from. It’s nuts.
The good thing is that we do have some new rules, regulations and restrictions that should help to shape lending practices going into the future. Hopefully, higher down payment and mortgage insurance requirements will be necessary to keep consumers from getting mixed up with an economically foolish home loan. Don’t get me wrong, I want people to be able to buy a house without excessive fees and costs, but not if it will cause the nightmare many of us are currently living. New regulations and documentation requirements will hopefully ensure consumers are informed about what they are signing are comfortable with their commitment to pay. It could cost timing for a loan to be processed and approved and fees might be higher but I think it will be worth the extra effort and will be good protection against another mortgage crisis. That being said… want to go check out a few properties?!