Mortgage Changes: Ready or Not ... Here They Come!
I know a lof of Chicagoland home buyers are worried about the current state of the market, and the ongoing government shutdown. But now really would be the best time to buy with upcoming changes in mortgage lending.
Mortgage Changes: Ready or Not ... Here They Come!
During the last few weeks, there has understandably been some reluctance on the part of hopeful potential Home Buyers to jump into the Home Buying Market. I've heard many familiar explanations beginning to crop-up again.Do any of the following sound familiar?
- It's back-to-school time. Our focus is on school and school activities
- Summer Vacations were in play
- There's limited inventory
- Job growth & Job stability is in question
And of course, the latest ...
- The Government Shutdown
- Potential Government Default
These last two have definitely proven to be unnerving for Home Buyers and Mortgage Lenders alike. The many uncertainties surrounding these issues have shaken-up the Financial Markets also. But as of right now, we have seen a rather quiet reduction in Mortgage Interest Rates ... about a half-percent dip in the last 30 days. Time will tell if this remains the case.
As though all the recent disruption and uneasiness hasn't been enough, there are more Mortgage lending changes coming in the next few months too.What are some of the Mortgage changes on the horizon?
- Tighter Underwriting Standards ... in regards to Down Payment requirements and Loan-To-Value limits.
Conventional Loans will require 5% Down; FHA will remain at 3.5% Down Payment minimums.
- Debt-to-Income Ratios will be reduced with upcoming changes in play, after examination of the industry and Mortgage Reform discussions.
Where I as a Mortgage Lender can now approve Borrowers' loans with a debt-to-income ratio of 50%, 45% in other programs ... the new guidelines will likely be capped at 43% or lower, per the "Ability-to-Re-Pay" revisions that start January 10, 2014 for ALL Lenders. For those hopeful Home Buyers close to the "bubble" on debt-to-income ratios, this change will prove to be of specific interest and challenge.
Mortgage Changes: Ready or Not ... Here They Come! They say timing is everything. Those hoping to become Home Buyers have once again been provided ample reason to jump into the housing market sooner than later. Their time frame for action is the next 3 months. As of January 10th, 2014, and after ... the new Mortgage Lending changes kick-in and additional challenges will come into play.
* Hoping to Buy a Home or Refinance in a Lincoln-Way Community, Will County, or elsewhere in the Chicagoland area? Contact me NOW! I'll put my 36 years of experience and expertise hard to work on your behalf.
I can be easily found at:Direct: 815.524.2280Cell/Text: 708.921.6331eFax: 815.524.2281Click HERE for a FREE Mortgage Consultation!Ready to Apply for Your Mortgage?
Gene MundtRegional Manager - Mortgage Lender
American Portfolio Mortgage Corp.
Personal NMLS #216987
NMLS # 175656
Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. Gene Mundt, Mortgage Lender can be contacted at: 815.524.2280 or via his email: gmundt@goapmc.com.
Contact Gene Mundt, Mortgage Lender soon!
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