How to Navigate 2014 Mortgage Changes
Life Changes Realty Group helps you navigate changing mortgage tides.
What you need to know:
Due to some new restrictions on lenders that also go into effect in January, some have suggested that consumers may find themselves struggling to acquire a mortgage.
How we at Life Changes Realty Group can help you:
1. Ask Questions: If this all sounds a bit confusing, don’t worry. You’re not alone. With the complexity of the new rules there’s even confusion among lenders. We have strong relationships with lenders who keep us informed as they learn more. We will pass that information along to you and get answers to any questions you have.
2. Tackle Debt: If you have debt, you should try to reduce it, and this is true for all consumers, not just those looking to buy a house. Potential homeowners, however, should be extra motivated to conquer their debt: Under new ability-to-repay requirements necessary to attain a qualified mortgage, a borrower’s debt-to-income ratio must be 43 percent or less, including the potential mortgage payment. We will meet with you to take a look at your debt position and make suggestions BEFORE you are ready to buy.
3. Start the Paperwork: Lenders will be requesting more documentation. Be ready to pull documents and get whatever the lender requests to them. Don’t get upset if they ask for lots of documents. Talk frequently to them to understand what deposits will need to be documented. Ask the lender exactly what you will need to provide. We prepare you for the process from the very first meeting.
“We’re really needing to get a very holistic perspective on the borrower in order to complete the analysis necessary to meet compliance,” Weinberg said. Life Changes Realty Group is all about taking a holistic approach – We will walk beside you through these changes.