Learn About Changes Occurring in the Mortgage Market that Could Affect Your Buying Power

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Hello, welcome back to my video blog. Today I will be discussing some shifts within the mortgage market. There are two big changes and two big buzz words that I'm going to inform you about.

• One of the big changes that you will notice is a maximum of 3% in lender-charged closing costs.
• There will also be more stringent qualifications for loans, changing from 45% to 43%. For example, if your monthly income is around $8,000, then this will change your purchasing power by $30,000 with current interest rates.
• Rebuttable Presumption is a word you might start to hear more often, and it refers to a lenders requirement of not only looking at a borrower's ability to pay, but also their willingness to pay. This will force lenders to start looking at unforeseen changes in the borrower's status that would affect their ability or willingness to pay a loan, which will also require more documentation.
• Another change is that their will no longer be advertising for negative loans or interest-only loans.
• Also, government-backed loans (FHA and VA loans) will not be changing.

You can also expect home prices to continue to rise, making real estate a great investment.

That's all I have for you today, but if you have any questions or concerns please contact me at (651) 481-6711 or email at TheVannesteGroup@gmail.com