New Changes Make It Easier To Buy Your Perfect Dallas Home Nov04


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New Changes Make It Easier To Buy Your Perfect Dallas Home

If you’ve been looking at relocating to the Dallas area, you’ve seen the numerous stories about the strength of our real estate market and local charm. Now there’s news from Washington, D.C. which could make it easier for you to finally make the move. Financial regulators have made moves to lessen some of the restrictions on borrowing the money to buy your perfect home. This news is a sign the economy is recovering from the last financial crisis. What regulations remain are seen as common sense measures to give homebuyers a chance to invest in a new home without going into extreme debt and defaulting on their loans. After years of consideration, regulators have approved measures which no longer require borrowers to have a 20% down payment on a home along with banks having to hold 5% of mortgage securities tied to the loan.

These changes were first put to regulators in 2011 and will be effective in a year. Following the 2008 financial crisis, laws were put in place to stop the problematic lending practices in the housing market. Generally speaking, banks were offering risky mortgages which allowed people to buy homes they couldn’t really afford. Many homeowners defaulted on these loans and left financial institutions with loads of debt. That debt was later taken financed by taxpayers. The new changes approved by the Federal Reserve are a compromise of sorts. Those looking for a new home are able to get their loan without a hefty down payment, provided banks take more responsibility for these loans rather then sell them off to other institutions. Regulators hope that if banks are willing to take more financial responsibility for their loans, they will be less likely to hand out the risky loans which sparked the 2008 financial crisis.

One of the biggest aspects of these changes is an adoption of a new definition of what a “qualified” mortgage is. As the new regulations were being debated, many in the housing market spoke up to support this change in definition. Though banks will have to take more responsibility for their lending actions, many expect the changes will convince the public to start buying and building houses.

Though other American cities aren’t so lucky, Dallas’ housing market has been showing signs of strength in the years after the fallout. Dallas is under what many consider to be a seller’s market as more people move to the area looking for homes. So far 2014’s third quarter has seen more closings since the same quarter in 2008, and home builders continue to break ground for new developments. If you’re ready to make a move to the Big D, give the realty experts at Modtown Realty Group a call and let them find the perfect home to match your lifestyle. Call today and let us find your perfect home! (214) 521-8657