Borrowers are being squeezed into becoming good credit risks

As underwriting guidelines tighten up from Lenders more and more borrowers are being pushed out of the market until or unless they meet the higher guidelines to owning a home. Credit scores need to be higher, money needs to be put down on a home (imagine such a silly thing as that!), appraisals are being more closely looked at, and believe it or not, you actually have to prove your income and assets to get a good rate. This is not anything new about underwriting but a return to standards that existed in the past to prevent financial disasters from taking place. It is interesting that when the borrowers put some of their own hard earned money in the purchase in the form of a down payment they pay a little more attention to making their mortgage payment. It seems to make for a stronger partnership between the lender and the borrower. Maybe this is a start to repairing some of the damage that was done in the mortgage arena. www.rateinformer.com