The process of financing a home can seem daunting. Not very many people have enough money in the bank to buy a home outright, so they use a mortgage loan as a way to pay for the home over a fixed period of time. The mortgage loan industry in the United States is one of the biggest financial sectors in the country. From 2007 through 2010, the mortgage industry went through a crisis after a rise in subprime mortgages. A subprime mortgage is a loan granted to people who have a history of missing payments. Many people defaulted on their subprime mortgages, compromising the industry. This led to the federal takeover of mortgage lending giants Fannie Mae and Freddie Mac.
New laws regulating mortgages stopped risky lending practices by dictating certain conditions which must be met by both the lender and borrower. The new measures are aimed at lowering the number of people who default on their mortgage, which sends the home into foreclosure.
Contact the mortgage loan professionals at Ace Mortgage Loan Corporation for more information about securing a home loan.