Wachovia getting tougher on loan requirements!

Wachovia is stepping up and revising the underwriting policies in its mortgage loan business, a step that could make it harder to take out a home loan. the new changes are expected to take affect the end of April. Among the changes the borrower is now required to have a minimum qualifying FICO score. Isn't it about time? Tighter restrictions on home loans is a good thing for us all. It makes us more responsible as individuals. When did the beliefs "that you get what you pay for" and "you earn what you work for" go away? We are accountable. This is a tough time no doubt, but we will make it through it. With rates at an all time low, many lenders in addition to Wachovia are toughening the guidelines for mortages. Although this may seem unfair to many, it is the type of restrictions that will prevent the type of mortgage crisis we are in from occurring in the future. We will be better off in the future if we all tighten our belts and take responsibility for our actions and our spending. We have to manage better personally. We have to stand up to the credit and gas industries which have no doubt contributed to the financial crisis we are in today. Gas prices are still going up and high rate credit cards are still being issued. When will they stop? When will we stop? Maybe when we are disciplined enough to stop driving our gas guzzling cars and smart enough to cut up the cards when we get them out of the mailbox! Think about it...if everyone in the nation did not drive one day a week there would be an automatic surplus of oil. What would they do then? What would the price of gas be with all of that oil sitting off of the coasts of the USA? How much more cash would every American have in thier pocket to purchase goods, cars and homes? If we all used more cash, there would be more cash in the banks to loan to people to buy homes! Good for Wachovia for stepping up and making it tougher to get a loan. Don't worry, the 100% loans and low down payment loans are still out there. If you have good credit and a FICO over 500 you can still qualify to purchase a home. Having restrictions will create discipline.  Having qualified buyers will help the home seller and the realtor make more sales in the upcoming year! Want to know more...give us a call!