Financing That New Home

There is no doubt that the guidelines for credit approvals have tightened compared to this time last year. The same person who applies for a mortgage a year ago, can not be adopted today. Unfortunately, this is the result of predatory lending practices where borrowers were enticed with low introductory interest rates, once the promotional period was over, the rates surged to an unreachable, causing many people to lose their homes. In August 2007, the number of foreclosures rose 115 percent from August 2006 – one of every 510 households affected.