One would expect that this would be the best time to purchase a home. This is considering the 30 percent drop in real estate prices throughout the U.S. in relation to prices back in 2006. Interest rates are also lower than they’ve ever been. Yet, there are still some potential stumbling blocks for those who are interested in obtaining a new home. This comes in the way of lenders setting difficult restrictions that have prevented many potential buyers from obtaining the required financing needed to purchase a new home.

“It’s obvious that since the issues that have caused so many foreclosures came about, financial regulators are keeping a close eye on lenders,” says Alberto Tarafa, respected Foreclose analyst. “After the previous disasters, lenders are wary about finding themselves in the same compromising situation.”

Not that long ago, just about anyone was considered qualified for a new home loan. Nowadays, it’s just the opposite. In addition, the loan process which used to take a very short period of time has extended considerably as documentation is being checked much closer to the actual home sales date. This is in accordance with the rulings of Federal regulators. This is causing delays of up to two weeks for settlements along with far more strict payment and credit requirements. This can make real estate purchase procedures a tenuous affair.

Interestingly enough, this is the way that it should have been during the period of the real estate boom. With lenders requiring more evidence of income and performing better credit checks, the current foreclosure rate would be quite different. But in the eyes of real estate agents, these new stumbling blocks may seem to have become too picky.

Alberto Tarafa states, “One can’t blame the regulators for taking these measures. Additionally, lenders are now aware that they can be called to task for the actions they make today. This means they need to be extra careful.”

Some of the advice given to those who wish to purchase a new home includes not making any new furniture purchases prior to closing a deal on a home. Any new purchase can upset the income to debt ration and cause a home purchase to be cancelled by the lender. Fortunately, with stricter policies in place, it seems that the foreclosure potential for new home owners will definitely be on the decline in the future.

By Jeremy M. Brown