"The whole process with selling our house and buying a new one was very smooth," Mark said. "We put our house up for sale, got a mortgage pre-approved and our house sold in two days."
The couple later found a house in
"After we got a pre-approved mortgage, I did some shopping around to make sure we got a good value and rates were competitive," Mark said. "It turns out the rates were better and more competitive than other lenders."
The Hufgards said they were very successful in getting a 15-year mortgage with an interest rate under 4 percent from
"There are stricter guidelines that us lenders need to follow," he said. "One of the big ones is QM, or qualified mortgage."
Most important of the major changes is the debt-to-income ratios for borrowers looking to be approved for a mortgage.
This applies to all homeowners, from first-time home buyers to those interested in refinancing.
Koch said there are two other big changes that come along with the tighter rules.
Institutions will no longer be permitted to offer interest-only mortgages, balloon loans, mortgages with terms longer than 30 years and negative amortization.
"Also, certain fees and point structures are capped based on a sliding scale approved in the regulations," he said.
A main reason for these changes are to help the borrower have a more affordable mortgage.
Pinto said this is a good thing because it is helping both the lenders and the buyers.
"Honestly, I think (these changes) are better because we aren't putting people in houses that they many not be qualified for," he said. "Also, it is help to us because all loans we are doing are now qualified loans, and now lenders are on the same playing field."
The new rules won't necessarily make it harder to be approved for a mortgage, but borrowers may need to provide more documentation while going through the process.
W-2s and tax returns for two to three years, along with bank statements and pay stubs for two to three months, will be required with the application.
"It's not any harder, you just need to be qualified," he said. "We are still giving money out, but not giving the money away."
"You must have a proper credit score, down payment and continued employment," he said. "A consumer has to understand what they are entering into."
Another change to the new rules is an option to attend home counseling before they enter into a mortgage.
"These changes are all to protect the consumer," he said.
So far lenders have not seen much of an impact from the new rules, and are optimistic that the new rules will help the housing market.
"It's never been a better time to buy," Linich said.
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