Brighton Buyer Agent Warns Home Buyers in Brighton Michigan

There is a new set ofLoan Level Pricing Adjustments (LLPA) that are coming to the home lending business right now. This may create problem for Brighton Michigan home buyers. One of the reasons this country has such a high home ownership rate is that we typically have low mortgage costs for home loans. A reason for that is the standardization of loans by some giant pseudo-government entities, primarily FannieMae and FreddieMac. About 80% of home loans meet these standard guidelines, and it allows for simple exchange of loans by institutional investors. These are called "conforming loans". As you probably know, not everyone gets the same loan pricing when they get a loan. That is because of the LLPA. These adjustments compensate for variations in each loan, the dollar amount of the mortgage, the type of property being purchased, what the property will be used for, the credit score rating of the buyers, and even the location location of the home. This standardization