As some of you may know, there have been some imposed changes that will decrease our borrowing power when it comes to purchasing a home. As of January 1, 2018, you will need to qualify under more stringent rules in order to get the mortgage you desire.
Assuming all other factors remain unchanged, once the new changes are in effect you would qualify for an amount 18% less than you would under the current mortgage rules. Here is an example.
By no means are we experts when it comes to real estate, but we do know that it is important to understand what you can afford, what the new rates mean and how the changes will effect the real estate market as a whole. Having a pulse on the financial market, we feel that these new changes may soften the market which could lead to fewer qualified buyers and a possible decrease in home prices. Being aware of these variables will assist you in making an informed decision when purchasing a home.