2 New Developments in Mortgage Rules That May Slow You Down
It’s a bit of a trade-off, actually — it’ll make the process ‘easier,’ but longer — and you can understand without a doubt that there are some potential home buyers out there who might not like the longer part about these new mortgage rules. Here’s the skinny on the mortgage rules and how it’s currently affecting potential home buyers as of this past October 3 —
The New Mortgage Rules — Favoring Transparency Over Timing
Long gone now are the old forms home buyers will get from lenders. Now we have just two forms we all have to read (and according to the analysis, the content’s pretty easy to grasp):
- The Loan Estimate Form — The key to this form a potential home buyer will receive according to the new mortgage rules is that it breaks it all down for you. Itemization. The form’s a must. And here’s why.
- The Closing Disclosure Form — Virtually identical to the loan estimate, but detailing all the relevant information every home buyer will need to look at. Only it’ll be a lot easier to grasp all that information for you to know what you’re getting into. What kind of information is included, though?
It’s about cost, really. Being in the know is key. However, there’s the question of expediency, and even then, many individuals might still find it difficult to understand just how the process works — something the real estate market values a great deal, knowing what you’re getting into and how fast you can get into it.
Just How Much Will These New Mortgage Rules Slow Down the Home Buying Process?
We can do a comparison here: chances were pretty good you’d need an experienced real estate attorney to guide you through the ‘stereo instructions’ of these mortgage forms before October 3rd, but at the very least, you’d be able to fund and get your finals on that same day. It was pretty quick.
Now, though, thanks to these mortgage rules — there’s a timeline everyone has to abide by — the new TRID rules add a good six days to the process from starting application to appraisal. Now don’t get us wrong — when done electronically, that appraisal can be done in one day. Not too shabby. Bear this in mind — that’s the timeline for post-application!
What about the pre-closing process? How long will that take? According to the new mortgage rules, you’ll have a 3-day waiting period after the closing disclosure is finalized, so that means even when the lender’s ready to go, you, the home buyer, will still have to wait.
This is to ensure nothing falls through, minds change, or people back out, though. So you can understand the reasoning.
But Is It Worth the Trade-Off?
You decide. What do you think? As a potential home buyer through the H.O.P.E. Program (hopefully), will this affect your timeline, perhaps save you money down the road? Or will it be just a monumental waste of time?
As always, the answer resides with you. The homeowner. That’s the value H.O.P.E. to Own brings is the preparation, resources, value, and streamlining the process as the legal landscape continues to change. So let us know what you think!Share