With the upcoming changes on Jan 10...

[mrmoneypants]

A little background story: I'm currently in the process of either purchasing or building a new home in the next 5-9 months. I've got a 720 FICO mid score, with nothing on my credit history other than a 30-day late payment 4 yrs ago and a 38% credit utilization (getting lowered each month), so I don't foresee much of an issue in securing a loan. I do have my "preapproval" letter from NFCU when I got to their office last week which, correct me if Im wrong, isn't really a preapproval as I didn't give them much info other than gross income and minimum debt requirements fro the credit cards.  

With the mortgage changes in this next week, I had a couple questions for anyone who may know. I tried looking it up/reading on all the changes but I didn't find the answer. 1) Will the changes affect the preapproval process, or the entire process? 2) If it affects the preapproval, should I go ahead and get that preapproval now before my realtor gets back with me on some potential homes? My preapproval letter says I'll be good for 250k, but I know a lot goes on in the underwriting and such so that could be higher or lower. 

Thanks in advance for reading/answering!

[mrmoneypants]

Also, has anyone had a good experience with the Navy Federal HomeBuyers Choice? Or just getting the mortgage with NFCU in general?

[pipeguy]

My understanding is that the regulations are going to be delayed or discarded.

http://online.wsj.com/article/BT-CO-20131220-712709.html

http://www.americanbanker.com/bankthink/delay-legal-liability-under-new-mortgage-rules-1063482-1.htm...

http://valuationmanagementgroup.com/blog/house-members-seek-one-year-delay-of-mortgage-rules-slated-...

[mrmoneypants]

It's odd, I did see the WSJ article a while back but some of the more recent articles I've read show that the changes are still going forward, IE the ability-to-repay being changed to 43%. I *think* I'm going to be at that edge as the mortgage payment I calculated would put me there. Obviously, I can just reduce it by paying some of that off, but the majority of my current debt obligation is due to furniture purchases that are on an interest-free plan for another couple years. 

[StartingOver10]

I have been receiving email updates from the various lenders I work with and as late as last Friday the email update indicates the new regulations QM go into effect for those applications made on or after Jan 10, 2014. The last update also mentioned that they will still originate non-QM mortgages as well.

OP don't worry about it. You seem to be in good shape. The seller may or may not require a PQ after Jan 10, but I think that is unlikely. I think you are in good shape to start looking with your Realtor. If you want to be pro-active get your documentation together and call Navy on the 10th to see what they need to do to update your letter.

I haven't had a Navy Federal loan myself, but several of my clients (I'm a Realtor) have used them and we didn't have any issues at all. They were responsive and we closed on time.

[pipeguy]

Looks like they didn't delay the new rules:

http://www.today.com/money/new-mortgage-rules-no-traps-no-runarounds-2D11888322

[ShanetheMortgageMan]

The new "Qualified Mortgage" (QM) rules that went into effect on 1/10/14 will impact only a small portion of the population.  Loans that have automated underwriting approvals from Fannie Mae, Freddie Mac, FHA, VA or USDA will all fit within the QM definition.  Those who aren't able to get automated underwriting approvals will need to be manually underwritten, and manual underwriting guidelines coincide with the QM definition anyway.  Simply put, the people who will have more difficult time getting loans will be those seeking out interest only loans or with amortization terms longer than 30 years (i.e. a 40-year mortgage).  Non-QM loans are still being made, and I believe in the future we'll see more and more mortgage lenders offering those types of mortgages.  We're actually seeing credit loosen up in terms of more flexible loan programs coming out on the market.