With the constant barrage of news stories discussing challenges in the housing market, it’s not surprising that potential home buyers believe that getting approved for a mortgage is hard. The news media and “experts” in the housing industry constantly talk about how the home ownership rate in America has dropped. But cut through the clutter of news stories, social media posts and so-called expert opinions, and you may be more surprised to learn that the percentage of people who own a home in 2014 is the same as it was in 1995 – 65.1%! Historically, the average homeownership rate has been above 64% since 1980.
What has changed is that new mortgage rules have been enacted at the federal level. Issued by the Consumer Financial Protection Bureau, these rules were developed to put an end to the worst mortgage lending abuses and to offer consumer protections without limiting loans to qualified borrowers. These are good things that will help ensure that people who get into new homes are able to stay there!
Lenders will have more requirements for determining you can afford your home, documenting your income, assets, credit history and debt, and issuing mortgages without risky features or excessive upfront fees and charges. While this might mean more paperwork and slightly longer loan processing times, it doesn’t necessarily mean a more difficult approval process for consumers with a steady job and good credit.
So don’t let the media fool you – home ownership is alive and well and may just be waiting for you. Learn more about the steps in the home buying process in our “How Do I Get Started” section. Knowledge is the first step to your new home. Good luck!
