What in the world are these new mortgage guidelines about?

Have you seen it?

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This new rule really changes how lenders are going to look at borrowers. Listen up!

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In short, if you have a high credit rating and put 20% down, your fees will go up.

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If you have a lower credit rating and put down 5% (for example) your fees will go down.

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This new rule seems to disincentivize good credit (and fail to punish bad credit). It seems to do this because it DOES do this.

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So, what to do?

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Well, if you've spent your adult life building a great credit rating, but haven't yet bought a home, this is going to sting. Mortgage payments will be about 0.1% higher than they were before the news. Takeaway- If you are on the fence, get in the game and buy. Rules are not getting better for you...only worse!

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If you've wanted to buy a home but worried that your credit will be a barrier to getting a good, affordable monthly payment, things have gotten a little easier. Closing costs have dropped by more than 1% of the purchase price. That adds up. If the math was close for you, it may have changed.

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Reach out. Let's talk.

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