NEW GFE effective Jan 1 - 12/23/09 06:03 PM
Have you looked at the new Good Faith Estimate yet?  Well I would encourage you to.  Starting January 1st lenders are required to use a new GFE.  It is a three page document now, not just one.  It does spell out quite well what the closing costs are and what they are for.  There will be some confusion with this document though.  To start with there is nowhere to see what the total monthly payment is.  It does show principle and interest, but not the total payment with the MI, Taxes or Insurance.  It also does not show how much money … (1 comments)

Debt to income getting stronger - 12/08/09 12:40 PM
Effictive Saturday, December 12th the underwriting engine that is used to approve most loans is reducing its ratios to 45% with some flexibillity to 50%.  In the past we could run DO and get approvals to 54% normally and in the low 60's with a stong buyer.  What this means is the buyers debt to income ratio is lower.  The figure means the amount of total debt ( new house payment and all consumer debt) can only be 45% of the gross salary of the buyer.  So talk to your lenders if you have buyers shopping.  If you run DO prior … (2 comments)