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New mortgage rules take effect January 2014

-from the Washington Post

Checklist for potential home buyers

If you are considering buying a home next year, there are a few things you might want to consider now that the government has issued new mortgage-lending rules.

The rules, introduced by the Consumer Financial Protection Bureau on Thursday, essentially protect borrowers from many of the abusive lending practices that were rampant before the housing crisis, such as high upfront fees and interest-only payments.

Some elements of the rules are still under discussion, but here is a basic outline of what to expect when the rules take effect Jan. 10, 2014:

Paying up: Banks and other lenders now have to make sure you have the ability to repay your mortgage before signing the papers. That seems like a common-sense approach to lending, but until now there has not been a law on the books. Read more at the Washington Post.

Read more at National Mortgage Professional Magazine.

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