This weekend, Fannie Mae is overhauling its mortgage approval system. Earning an "Approve/Eligible" is going to be decidedly tougher than in the past.
For home buyers that have been in the market since January, this is not news; Fannie has been steadily trimming its serviceable market. Its changes were like duct tape on a leaky vessel.
Starting Monday, it's a brand-new bag and approvals may be sparse.
The good news for borrowers is that Fannie Mae is warning us of the change and will honor all approvals on the "old" system for 120 days.
Therefore, if you know you'll need a new conforming mortgage within the next 4 months and don't already have a Fannie Mae pre-approval, type this BASIC program into your Commodore 64 and watch the output:
10 Give a complete mortgage application to your mortgage lender
20 Goto 10
Here's a quick look at the new guidelines and what's changing:
If it seems like a long list, that's because it is. Home buyers hit by the changes may be subject to higher mortgage rates, higher loan fees, or an outright denial on their application.
Mortgage guidelines continue to tighten and many more homeowners are finding themselves outside the circle. At least this time, Fannie Mae is telegraphing the change.
Stay ahead of the game and get your mortgage approval into the system before the close of business Friday, May 30. The mortgage approval you save may be your own.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
Barry L. Systems Analyst
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2016 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)