I recently heard from a lender friend of mine that very soon Fannie Mae will be rolling out stricter guidelines for underwriting. Part of me says, “well about time” and another part of me is really thinking about how this will affect Buyers? Apparently, their current guidelines are debt to income ratios of 55%.Â As of December 12th, this will go to 45% with the occasional consideration going up to 50%.Â How does this actually affect Buyers?
1. If there was a home that you could qualify for buying today, you may not after December 12, 2009/
2. Your purchasing power will shrink. To put in relative terms for the Holidays, if you could afford a 20 lb. Turkey today, you may only be able to afford a 16-17 lb. Turkey in 2 weeks…
Moral of the story, if there’s a property on the market you’re eyeing today that’s in reach, it may not be 2 weeks from now. My suggestion is to contact your lender & see how this affects you & get a hold of your agent to help you secure the property before it’s no longer in reach!