With many major changes coming in the mortgage and finance industries as of the new year, it is more crucial than ever to have an experienced Lake Nacimiento real estate agent at your side when buying a home in 2014. While many of these changes are being introduced to both protect the purchaser and the lending institution, navigating the home buying process can get a little tricky. Whether you’re searching for a seasonal getaway in Oak Shores or Heritage Ranch or you’re hoping to relocate permanently to one of the picturesque homes on Lake Nacimiento, a bit of research ahead of time and teamwork with your Lake Nacimiento real estate agent will ensure that you can still buy that home that you’ve been waiting for. Some changes to keep in mind when buying in the new year include:
-The definition for a qualified mortgage (affecting any loan applications received on or after January 10th) will change. This means that specific standards will be put into place to ensure the likelihood of a borrower defaulting on their payments will be very slim. For example, a borrower’s debt cannot be greater than 43% of their annual income. At Oak Shores Realty, we always encourage potential home buyers to pay down as much of their debt as possible, including credit cards, car notes, other mortgages, etc, prior to buying Lake Nacimiento real estate. As of January 10th, that will become a must do to ensure that your debt-to-income ratio doesn’t prevent lenders from approving your mortgage application.
-Fees charged by a lender cannot equal more than 3% of the loan balance and loan terms longer than 30 years will be prohibited. These new regulations will work hand-in-hand to help long-term mortgages become less costly to the buyer.
-More documentation and paperwork for your loan application may be required, so the best thing to do is prepare ahead of time. Everyone is entitled a free copy of their credit report from each of the three major credit institutions. Reviewing at least one is highly recommended before beginning your home search. Additionally, gathering income tax statements for previous years, check stubs or income reports from your place of employment and financial statements from your bank(s) is also a great way to be proactive as lenders will almost certainly request to see these documents.
While it can seem like a lot to take in at once, remember that there is no shame in asking questions! Oak Shores Realty is always available to assist you with your real estate needs. As a longtime Lake Nacimiento real estate agent, we are fully prepared for these changes and helping our clients navigate the home buying process in a streamlined, stress-free manner. Contact us today and rest assured that, together, we will find that great Lake Nacimiento home ideal for you!
Grace Borzini
Your Local Lake Nacimiento Real Estate Expert
Oak Shores Realty
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Oak Shores Realty specializes in Oak Shores at Lake Nacimiento properties. Please contact us today to get more information on Lake Nacimiento lake homes. Oak Shores Realty can also provide you an insiders “Lake Nacimiento Buying Guide” with great information including maps and market information.