What’s Happening?

Fannie Mae, one of the big players in the mortgage world, is updating their Desktop Underwriter (DU) system on January 18th. This system is like a super-computer that helps decide if you get approved for a loan. Here’s what’s changing and why it matters to you:

1. New Ways to Look at Credit

Credit for Everyone: Now, even if you don’t have a traditional credit score, DU will look at things like your bank statements to see if you manage your money well. This means more people might qualify for a mortgage who couldn’t before

Average Credit Scores: If you’re buying a home with someone else, DU will now average your credit scores. If one of you has a lower score, this could help you get a better loan deal.

2. Understanding Your Money Flow

Cash Flow Check: The update will dive deeper into how you spend and save money over the last year. This could help if you’ve had a steady income but little credit history.

3. Simplified Process

Less Paperwork: If you don’t have a typical credit history, you won’t need to jump through as many hoops to prove you’re a good borrower. This makes the whole process faster and less stressful.

Why Should You Care?

More Opportunities: These changes could open doors for first-time buyers, single parents, or anyone who hasn’t built up a credit history yet. If you’ve been worried about not qualifying for a mortgage, this might be your moment.

Lower Rates and Better Terms: By considering more about your financial habits, you could end up with better loan terms or interest rates.

Easier Home Buying Experience: Less paperwork and a clearer look at your financial health mean you can focus more on finding that perfect house rather than worrying about loan approval.

What You Can Do Now

Review Your Finances: Start looking at your bank statements and spending habits. Good habits here might just get you that loan approval.

Check Your Credit: Even with these changes, having a good credit score can still help. Get your free credit report and see where you stand.

Talk to Me!: I’m here to help you understand how these changes can work for you. Whether you’re buying your first home in Raleigh or moving up in Greensboro, let’s talk about how to make this work for you.

Get Ready for January 18th

This update is a big deal for anyone looking to buy a home. It’s all about making homeownership more accessible. Keep an eye out for more updates from me, and remember, I’m here to guide you through every step of your mortgage journey.

Stay tuned to www.robyothemortgagepro.com for more tips, tricks, and mortgage news. Let’s make your homeownership dreams a reality!

Remember, this information is based on the latest updates from Fannie Mae, but always check back for more detailed info or contact me directly for personalized advice.