Oakland First Time Home Buyers Hurt By Mortgage Meltdown

In the past several months, several of the nations largest lenders have closed their doors. The ones that are still around have tightened up their standards in terms of who they lend money to, which puts home ownership out of reach for thousands of individuals.

Even the below market interest rate programs have adjusted standards. Some people who were wating to pull  the trigger on purchasing, and did not have interest rate locks were suprised to learn that their interest rate had risen by about 1/2 point over night. This happened to a client of one of my colleagues, and it wasn't a happy situation.

When the market was super hot (2002-2005) lenders came out with all types of programs to get people into homes who otherwise could not afford them, now that is proving to be a mistake that they are now correcting. They are forced to look at borrowers much more closely, verifying income more accurately and not allowing for much credits back to the buyer at the close.

Hopefully overall this wil help prevent people from losing their homes which is happening at an all time high in my market.

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