The world of real estate is constantly changing, and this is especially true when it comes to home loans. As a professional refinance lawyer, you may be wondering what the future holds for your clients looking to refinance their homes. Here are some trends and predictions to keep in mind:
- Interest rates will continue to fluctuate
One of the biggest factors in home loans is interest rates. Interest rates have been historically low in recent years, but they are expected to rise in the future. This means that if your clients are considering refinancing, they may want to do so sooner rather than later to lock in a lower rate.
- Digital mortgage applications will become more popular
In today’s digital age, it’s no surprise that mortgage applications are becoming more digitalized. This trend is likely to continue, making the application process faster and more convenient for your clients. With digital mortgage applications, borrowers can complete the application process from their home or office, upload documents and communicate with lenders online.
- Alternative credit scoring models may become more common
Traditional credit scoring models may not always capture the full creditworthiness of borrowers, especially for those who are self-employed or have non-traditional income sources. Alternative credit scoring models that take into account factors like rental payment history and utility bill payments may become more common in the future. This could help borrowers who have a lower credit score but are otherwise financially responsible.
- Non-bank lenders may gain popularity
While traditional banks and credit unions have long been the main source of home loans, non-bank lenders have been gaining popularity in recent years. These lenders may have more flexible underwriting criteria and offer more competitive rates. As such, your clients may want to consider working with a non-bank lender when refinancing their home.
- Government-backed loans will remain popular
Government-backed loans like FHA and VA loans have been popular options for borrowers who may not qualify for conventional loans. These loans offer more flexible credit requirements and lower down payment options. As such, they are likely to remain popular in the future.