One big change that will make it harder to get a mortgage after January 10th
Of all the mortgage rule changes coming in January under Dodd Frank, this one affects you the most if you want a new mortgage or refinance.
Mortgage rules under The Dodd Frank Wall Street Reform and Consumer Protection Act will change on January 10, 2014, affecting both homeowners who want to refinance, and first-time homebuyers who need a mortgage.
If you’re wondering which rule change will have the biggest impact on mortgage seekers, the answer is the rule regarding allowable debt-to-income (DTI) ratio. The DTI is your monthly debt repayments (including your prospective mortgage, and any other loan or alimony payments you must make) divided by your gross monthly income (your income before taxes).
(more…)
Do’s
DO let The Mueller Team know of any changes to your income or employment.
DO get preapproved BEFORE putting in an offer to purchase a new home.
DO keep a paper trail of any large deposits or transfers made into your bank accounts. DO respond promptly to your Realtor and The Mueller Team.
DO continue making timely payments on all accounts, including your mortgage or rent. DO call The Mueller Team with any questions.
Don’ts
DON’T make any large purchases (car, furniture, jewelry, etc), even on same-as-cash financing. DON’T pay off or close any accounts or loans before discussing with The Mueller Team. DON’T apply for or open any new credit accounts.
DON’T start any home improvement projects.
DON’T transfer any balances from one credit account to another.
Follow Our Team
Posted On Twitter By @PfitzerMortgage