The Future of Mortgage Loans – What to Expect in 2017
For the past 40 years, the mortgage industry has been in constant change. Spanning from interest rates to repayment methods, you’ll see a lot of movements as compared to before. Many experts are attributing this to the continuous technological development the society is experiencing today. With these, you can expect further changes that will totally shake up the industry and here are some predictions that may lie ahead for this coming year.
Non-Bankers will become Predominant Lenders
People who want to apply for a mortgage plan will no longer rely on banks. Mortgage experts from Citycreekmortgage.com are foreseeing an increase in other types of lending institutions. Some good examples of these are the brokerage firms and mutual fund companies which often offer more secure financial plans.
A New Type of Loan will Emerge
Lending institutions will continuously push for a new type of mortgage plan to accommodate the needs of borrowers with special conditions. Although it may only be limited to government-guaranteed programs, the aim of this change is to give a chance to people with low or bad credit score.
Stricter Loan Standards
Lenders will implement stricter rules when it comes to the loan application. It is no longer just about credit scores and written agreements. Debt-to-income and loan-to-value rate will play a crucial role in how much fund you may qualify for. Other than that, there’ll be guidelines and policies to protect lenders from possible financial losses to which will equally safeguard borrowers from shady transactions.
Online is the New Trend
In this millennial generation, one can expect that many things can be done and submitted online. Gone are the days for the long and tiring paperwork. You can expect a more individualized service for loan application and approval without waiting in queues.
With the opening of the new year, debtors and creditors are expecting many changes. All of which is just to cater the needs and financial assistance of each and every one. As the year 2017 arrives, you can only hope for better and prosperous days to come.