Are you trying to decide if it is time to buy a home in Northern Virginia? What is the first step? The most significant part of buying a house is, of course, the acquisition of a mortgage loan. There are new mortgage rules in place. These rules were enacted for the protection of both the borrower and the lender.
In order to issue Qualified Mortgage (QM) loans, lenders must verify the borrower's ability to pay back the loan. That means delving deeply into the credit history, employment, assets, etc., of the applicant. If the loan results in more than a 43% debt-to-income ratio, it may be denied. In numbers, this means that a person with an annual income of $80,000 should not exceed about $2,800 in monthly debt.
On the other hand, mortgage lenders are responsible for seeing to it that the borrower knows exactly which part of the payment goes to interest, principle, any fees, and also the amount of the balance of the loan. This gives the borrower the information needed to better plan for repayment of the loan.
When there is an adjustable rate mortgage (ARM) the lender is responsible for informing the borrower several months in advance of any rate increases. The lender is also required to contact the homeowner within 36 days of a missed payment. Within 45 days of a missed payment, the lender is required to inform the borrower of any options available for working out the loan payment, and where to apply for any assistance available.
It's a huge decision to buy a house. You want it to be a good experience. With the right real estate representative giving you the best advice, that can happen. That's where JC Advantage comes in. Let us put you in your dream house! Visit our office at 8245 Boone Blvd, Suite 410 here in Vienna. If you prefer a phone call, our number is (703) 442-0007 Ext. 1, or you can send us an email at conor@jcadvantage.com
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