It's easier than ever to get a mortgage. Lenders now help borrowers get into homes with no money down, bad credit, no proof of income and even bankruptcies in their pasts. But all of this tinsel can hide a harsh reality beneath. While the explosion of subprime lending, the loosening of credit standards and the relaxation of underwriting guidelines makes it simpler to buy a house, it also makes it easier for people to be seduced into borrowing more than they should. Consumers who aren't careful can find their financial standing tarnished.
Many people are very excited about being able to get a much more expensive house.
I think it's excellent that they've opened up homeownership to more people. However, it still requires discipline when you pay your mortgage. Credit the strong economy, the desire among lenders to keep profits rolling in, and the political jawboning and budget initiatives of the Clinton administration. The rising stock market and falling unemployment levels help ensure people have the money to buy homes. The never-ending quest for a buck leads mortgage companies to dig deeper into the borrower pool by loosening underwriting standards.