Kennewick -- Many first time home buyers will find it tough going when they try to finance. There has been a major change in the way lenders operate compared to even six months ago.
Not long ago the federal government was calling for an increase in the number of homeowners in America. Lenders responded by dropping interest rates. But not all buyers were prepared for the responsibility. That spurred what some lenders call a "sub- prime fiasco." Brian Nott with Vanguard Mortgage & Title explained it this way:
"They lowered the bar; but they lowered the bar a little to low. Too many people jumped over, and are now unable to pay their mortgage which is causing a backlash in the industry."
Nott says as a result, all companies have tighted up. People with bad credit or none at all will have a tough time financing a home, at least for now.