September 30, 2015

Home buying will become easier

Here is what I predicted would have to happen to get the home sales market back. The lenders have some new rules that will help. This story comes from by Teresa Dixon Murray, The Plain Dealer.

It points out the buyers will have much more information on their loans and their options on them.  This will help them understand what type of property they can afford. 

Getting a mortgage is an ordeal and often feels “like a mystery,” CFPB
Director Richard Cordray said in a written statement. “It is time
consumers have more power in the mortgage process, and our new forms and
online tools will help make that a reality.”

The new forms and information that they talk about will bring to front all the closing cost and fees on the borrower for the loan.  I know I have been shocked myself at a closing where the buyer sees their loan fees for the first time. That is not fun to deal with.

” The documents will “use plain language and were designed to make it
easier for consumers to locate key information such as the interest
rate, monthly payments, and the costs to close the loan,” according to
the CFPB.”

This will get you a more informed buyer that will be able to talk shop on their positive experience on getting a mortgage. This will help home sells in the future and get more informed buyers.  I mean have you ever seen all the pages in a Home loan? In one instance a buyer called me and ask what he should do about seeing his mortgage papers.  He was related to me and getting a refi. He had tried to get a loan from another family member that was a mortgage broker.  After he looked at the $10,000 in fees his relative was making, we decided that he might want another lender that would save him a lot of money. That is what he did.

In the whole scheme of this market this really helps the home buyer and the sale of real estate.  Having this information will help the transactions go smoother and faster. It will also help buyers understand what they can afford. Brett Young Coldwell Banker  You can Click here to Email me if you need any Real Estate Services.