Buyers issues

RICHMOND, Va. – Oct. 21, 2009 – When the Federal Reserve enacted new rules to protect homebuyers from unfair and deceptive practices, it also made it more difficult to qualify for mortgages.With changes in the Federal Truth and Lending Act, “lenders are examining buyers’ credit under a microscope,” says Bruce McClary of ClearPoint Credit Counseling Solutions, a national nonprofit organization that helps consumers overcome personal finance difficulties. “These more stringent lending standards combined with the expiration of the first-time homebuyer tax credit on Nov. 30 will undoubtedly create even more obstacles for homebuyers.”McClary believes that homebuyers can address the situation best by maintaining a good credit score. He advises consumers to monitor their credit reports, and, if they spot any issues, no matter how minor, to work toward resolving them:• Address credit card debt. If necessary, seek free credit counseling from a trustworthy nonprofit agency.• Save for a downpayment. When the $8,000 first-time homebuyer tax credit expires, buyers will need more of their own money to buy a home. A healthy downpayment shows ability to pay. • HUD-approved housing counseling agencies offer free first-time homebuyer classes and counseling. Buyers who understand the home buying process, real estate terms and how to shop for a mortgage have an advantage. They can prepare for the process and avoid becoming victims of predatory lending. For buyers with credit report issues, a credit counselor can strategize steps for clearing up inaccuracies, paying down debt and improving the numbers.© 2009 Florida