Roost Realty
mortgage

Big changes to Mortgage Industry!

October 5, 2015 by · Leave a Comment 

On October 3rd, the biggest changes to the mortgage and lending industry in 50 years took effect. New government rules have taken hold in an effort to give buyer’s more time to review and limit pressure that can occur right before a closing.

What do these changes mean to us? Delays are expected as the new rules and forms are implemented. Lenders that I work with have recommended using longer time frames in our contracts. This will mean additional time for contingencies like appraisal and financing. Additionally, average closings times will likely be about 45 days (we have been closer to 30 days).

Many of you that have purchased homes in the past know that the last few days before closing can be hectic. Often the last portions of the loan process can be rushed. Under the new rules, buyers will get a closing disclosure 3 days prior to closing that confirms the true loan information.

As an industry, we have been working to get educated on the new rules. The changes affect buyers, sellers, lenders, closing attorneys, Realtors, and anyone that assists in the buying or refinancing process. We expect some bumps in the beginning, but in the long run buyers should find great benefit with this overhaul of the process.

 

Roost Realty