Sunday, October 04, 2015

Home buying can often be a scary process for many people.  As an 18+ year Realtor, I find it important to educate my buyers and arm you with knowledge.  This will make you more comfortable and help you to overcome the challenges that sometimes come up during a transaction.

As of October 3, 2015, the Consumer Financial Protection Bureau or CFPB is changing the loan process.  All lenders will have to comply with the new rules and some consumers may be confused. This is why it is critical to have a solid team of professionals working with you as you purchase a home.  You team should consist of a good lender who is prepared to handle the changes, a great title company that understands their role, and a very experienced Realtor who can help you navigate all of the ups and downs of home buying.

This short video will help you to understand the new process.

These changes were implemented to make the home loan process easier to understand for the consumer.  The changes will impact all aspects of home buying.  I have listed my recommendations here if you are thinking about buying a home:

  1. Select a well-educated Realtor that has an understanding of the new rules.
  2. Meet with a lender well in advance of shopping for a home.  It is critical to be pre-qualified and to know which lender you want to work with BEFORE you find a home.
  3. Be prepared to provide all of your information to the lender in a very timely fashion.  Failing to do so may result in a delay in the closing of your home.
  4. Understand that it will take longer to close escrow than it did previously.  An escrow period of 45-60 days will become the new normal.
  5. As you move through your transaction there may be periods of delay due to new disclosure rules. 
  6. Relax.  With the help of a good team, you will get through the process and be happy new homeowners before you know it.
Here are some other tools to assist you in the new process:

Sample Loan Estimate - Find information here about the loan estimate that you will receive from the lender when you apply for a mortgage. 

Sample Closing Disclosure - You will receive this document prior to closing.  It will show all of the costs associated with your purchase.  You should compare this to your Loan Estimate.

Owning A Home - This will guide you through the process of getting a home loan and help you better understand your loan options.

Home Loan Toolkit - This is loaded with information like checklists and worksheets to assist you in the mortgage process.  You will receive one of these toolkits when you apply for a mortgage or you can download one here.

This may seem overwhelming, but I am here to help you.  If you have any questions - please contact me.


Kristen Gil
Dickson Realty

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