Home Loans in the Home Buying Process

Home loans are an essential part of the home buying process, and unfortunately are one of the most complicated as well. There are a number of different factors that go into finding a home loan and how much one will be approved for.

Since the fall of the housing economy the home loan requirements have become more stringent in hopes to avoid another collapse. These new requirements may mean higher interest rates for unqualified borrowers as well as a larger down payment required for home purchases.

While the current interest rates are still historically low it is anticipated that over this upcoming year they will continue to rise as the housing market regains stability. For those looking into buying a home it is a good idea to get the process started now before housing prices once again rise. Interest rates for 30 year fixed rate loan are currently around 4.5 percent APR.

The very structure of home loans is going to change drastically in the next two years.  There will be several drawbacks to the new methods, such as, less people will be able to afford homes.  Bad credit to fair credit may not offer any options to potential homeowners.