Any 2013 buyer pre-approvals needs to be validated
under the new QM rule
Did You Know…you
should have any 2013 buyer pre-approvals validated
under the new Qualified Mortgage (QM) rule?
implementation of the Qualified Mortgage (“QM”) on
January 10, 2014, begin the New Year right by
advising your buyers validate their pre-approval
from last year.
QM has limits on
the type of products offered, has a debt-to-income
limit in some cases and caps the points and fees
charged by lenders. A qualified and experienced
like those on the CCAR REALTOR®/Lender Committee -
can evaluate the borrower pre-approval
against the Ability-to-Repay and QM rule, to ensure
there are no hiccups once the right property is
This is a great way
to add value to your buyer relationship and engage
the lender again if the borrower has not connected
with the lender since the pre-approval was issued.
Remember, after the
pre-approval is issued some changes in the
borrower’s financial condition, market conditions
(like rate increases) and other information unknown
at the time of pre-approval can challenge the
lenders ability to proceed with approval. Advise the
lender when a property is ready for contract and let
them confirm the pre-approval on that property
before writing the contract.
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