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What You Need to Know About Mortgages in 2014

 

The players may be the same but the game has changed a bit in “mortgage-world” 2014.

While the days of rock-bottom rates may be fading, plenty of deals are to be had, however timing and using your resources will be more important than ever.

One of the key differentiators in 2014 are new mortgage rules being imposed by the Consumer Financial Protection Bureau (CFPB), which impacts both lenders and borrowers.

Beginning Friday January 10, lenders will be required to obtain certain documentation to meet the Qualified Mortgage (QM) loan standards. Lenders must now have definitive proof that borrowers have the ability to repay the mortgage, in order to ensure the financial crisis of 2008 does not repeat itself.

Although this new requirement won’t exclude borrowers who have solid credit and the ability to repay, it will add a few extra steps and sometimes a few hurdles to the home buying process.

"People will still be buying houses and getting mortgages, but there will be tougher requirements with qualified mortgages (QMs)," David Carrier, Ph.D., chief economist and director of research for NAFCU said in a release. "That's a big unknown. We don't know what effect the [Consumer Financial Protection Bureau's] qualified mortgage rule is going to have."

What You Need to Know About Mortgages in 2014

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