Those of us working in real estate know that there are fewer buyers out there. New government regulations are likely to make that buyer pool shrink a little further. It sounds like this will happen over time so it won’t have a jarring effect.
Many people believe they can’t get a mortgage, and they may be correct. However, there are likely those who think they can’t get a mortgage, but actually could get one. The industry has a major perception problem.
In speaking with other agents, mortgage brokers and reading financial pundits, they all say we need to ratchet up the credit requirements and down payment requirements in order to buy a home. That’s fine, as long as everyone knows that by doing so, we will put housing in a permanent funk.
Check out CNN Money’s “Why You Can’t Get a Mortgage” article for more insight to the challenges facing prospective home buyers.
- Changes to the mortgage market beginning today (April 1, 2011) (hsh.com)
- Broker Compensation Rule Delay Not Good for Business, by Michael Dolan, Broker Pro Mortgage (oregonrealestateroundtable.com)
- A Glossary of Real Estate Terminology (streetsvillerealestatebuzz.wordpress.com)