Well you are not alone with this issue, and many people would love to move out their apartment, or rented home, and start living that “American Dream”, of being a bona-fide homeowner. There are many reasons that people are not qualifying for home mortgages in the Harris County and surrounding areas right now, and some consumers will have multiple reasons preventing them from buying their dream home. There is a huge inventory of available homes all over the Metroplex, but even lowering the prices on them does not seem to make them move any faster to a sale.
Debt To Income Ratio
There are stricter standards being laid out as this is being written, and the old sixty percent debt to income ratio will no longer be tolerated. The new figure that Fannie Mae has put into operation is forty five percent, which cuts down on the consumer’s buying power quite a bit. The government and the lending industry as a whole know that all to often homebuyers, mortgage agents, and realtors will try to force a sale on a home that cannot be afforded. In a perfect world your housing costs would not run over twenty-five percent of a person’s annual income. This is a figure that is from the 1970s and 1980s, and people do not mind being drowned in debt currently.
This has put many people in the rental market, and there currently not any home loan companies that will take a chance on someone that has already lost their home due to financial difficulties. For these future homebuyers, it would be wisest to get out of debt and rebuild their credit file, and score for a purchase a few years down the road. It is also a good time to just completely get out of debt, so when your credit is restore, there will only be the house note on your debt to income ratio.
Mortgage Lenders Missing The Closing Dates
This issue has everyone involved in the home buying process enraged currently. Home loan companies are given a closing date, and they agree to it, but just as quickly they will add, “but we cannot guarantee the date”. What happens is that the closing day comes, and the lender has not responded, or worse yet the day before, they have new issues about the loan, and they will need more time to let the borrow correct the situation. No one really understands the stall tactics, at all, but it is making home sellers rich, because the can refuse to extend the closing date, and just pocket the earnest money that was put down.
Tags: home buyers