This is the advice I give buyer clients, in this or any market
Buy a home where the monthly payment + operating costs is comfortable. And be prepared to live there for at least 4-5 years.
A client of mine defined “comfortable price point” as well as I’ve heard
“I want to buy a home where, if I’m out to dinner with five or six friends and feel like picking up the tab, I can, without really thinking about it.”
And then there’s this
Fannie Mae has announced changes in underwriting for loans submitted to its Desktop Underwriter (DU), Version 10.1. The new DU version will be implemented on or after the weekend of July 29. The changes are outlined in release notes issued on Tuesday and will apply to new loan casefiles submitted to DU on or after the weekend of July 29, 2017. Loan casefiles created in DU Version 10.0 and resubmitted after the weekend of July 29 will continue to be underwritten through DU Version 10.0.
Among the more significant changes accompanying the new version are the following.
- The maximum allowable debt-to-income (DTI) ratio that can be submitted in DU will be 50%.
- For DTIs between 45 and 50 percent, certain additional compensating factors will no longer be required.
- Cases exceeding a 50 percent DTI will receive an “ineligible” recommendation.
Too many people are buying homes that they just can’t afford. There is nothing wrong with a humble home. This is good advice.