Not since right before the Great Financial Crisis have we seen this! It just appears to me that lenders are trying to get you to play with fire again.
BUYERS! This is a dangerous move at today’s real estate prices. Prices must come down, or you need to offer less on a property that fits your criteria, by finding a seller who is realistic on price and needs to sell (motivated.)
Or WAGES need to increase. Wages are NOT keeping up with inflation. The median income in the US today is approximately $85,000. The income needed to get that DTI under 30% is $110,000 for a wage gap of 28%!
Traditionally, DTI was 28/36%. These days, my recommendation is to keep your DTI under 20% if you can because of the problems with property taxes and property insurance.
Locally here in Florida, many insurnace companies are dictating that costly home improvements be made before renewing your policy. Don’t ignore this. Shop around for new insurance quotes immediately. Don’t let this slide into a situation where you end up with forced insurance placement from your lender.
Sellers would be wise to price their properties correctly from the beginning of marketing.
Remember, your property really isn’t on the market unless it’s on the list…the MLS…and is AVAILABLE to the public for showing to the entire market.
