05 Dec Thinking of selling, buying or refinancing a home?

Thinking of selling, buying or refinancing a home? The time to act is now. On January 10, 2014, there will be changes to the mortgage rules that will make it more challenging for some consumers to obtain loans.

The changes being implemented are the final rules of the Ability to Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z).

Who will be impacted the most?

– Borrowers who are Self Employed

– Borrowers who have Credit Problems or High Debt to Income Ratio

Self Employed

If you are self-employed under the Qualified Mortgage rules you will have to prove you have sufficient cash flow to make the mortgage payments. The heightened emphasis on cash flow can make it more difficult to obtain a loan even if you have sufficient funds available to make payments during times of depressed cash flow.

Credit Problems/High Debt to Income

If you have a debit to income ration that is higher than 43% you will have difficulty and may not be eligible for a Qualified Mortgage if your application for credit is received on or after January 10, 2014. This is a result of the new rules dictating that for a Qualified Mortgage a borrower’s debt to income ratio may not exceed 43%. This includes the new mortgage as well as any other monthly debt including but not limited to credit card balances.

To take advantage of the current mortgage rules call me today.

Sincerely,

Tabbatha Sipes

Real Estate Professional

The Hermann London Real Estate Group

Mobile Phone: 314-593-7960