A New Borrowing Era - Post Subprime
Following the subprime mortgage crisis, and the political and economic changes that it has caused, will you be able to rely on your mortgage broker?
This is an important question for potential home buyers to ask themselves because mortgage brokers and lending agents were a cause of the mortgage and foreclosure crisis.
Irregularities in subprime lending have played a large role in the current economic crisis.
Many mortgage brokers that forced borrowers to forge documents and escalate income levels to enable borrowers to qualify for a mortgage that they weren't eligible for. Theses borrowers took a home loan that they could not afford.
As a result these homeowners were the first to fall behind and lose their home to foreclosure.
If you are planning to take out a mortgage and you are not a financial expert, you can and should seek financial advice from a professional.
Just the same you want to make sure that you have some basic knowledge
It is important for you to be aware of the terms and conditions you are agreeing to at closing. Borrowers that have fallen prey to misleading mortgage brokers could have easily avoided such mistakes by taking the time to understand the mortgage terms on their own.
Be careful and don't allow yourself to be taken for a ride that results in you losing your home through a mortgage foreclosure sale.