Mesa Arizona Houses On The Market Today
The new Federal Law may, at first, appear beneficial to those not familiar with the subjects of mortgage financing, real estate, appraisals or other services concerning the managing of real estate. I mean we always believe what we read, right?
Altering a variety of rules with the HERA ((Housing and Economic Recovery Act of 2008) and with the MDIA (Mortgage Disclosure Improvement Act), the most recent federal law was just passed and became law on July 30, 2009. Those pieces of legislation impacted both the Truth in Lending disclosures and the Good Faith Estimate provided to mortgage applicants.
Though the recent addition of the Federal Laws give the borrower more time to read and review their Truth in Lending and Good Faith Estimate this is possibly the only positive aspect of the new law. The new law offers the purchaser seven days to go through these documents, because a number of purchasers did not know the terms when they applied for a mortgage, including length of loan, APR (annual percentage rate), or variable rate vs. fixed rate. This is not where my dispute lies. In signing the many mortgage documents, myself and the majority of purchasers did not have a clear understanding.
If the APR (annual percentage rate) changes by 1/8%, up or down, while you are waiting to get your loan approved, you have to wait a minimum of 3 business days before closing escrow on your new homes. Any adjustments in the fees for your title work will also result in new documents being required and a new three-day waiting period will begin. If the buyer does not “lock” their interest rate this scenario could very well happen.
A new three-day period will also be triggered by any adjustment whatsoever in factors such as whether the loan has equal payment intervals or requires a balloon payment, whether it has a fixed rate or is variable, or whether mortgage insurance is required or not.
Where do such regulations originate? Does anyone consider the domino effect or possible consequences these new laws might have on the housing industry? The most important phrase in real estate has always been, “Time is of the Essence”. As a multitude of properties are now in the hands of banks, that concept has lost its importance.
What difference does another 3 to 7 business days make, when homes require 4 to 6 months or even longer to close escrow nowadays? The biggest problem since title fees change frequently and interest rate “locks” are usually for only 30 or 45 days, this new law without a doubt is going to put a crimp on the closing date of the buyer’s new home.
What about the business opportunities. Downtown San Diego Homes For Sale For the first time when they are on vacation. To get the widest exposure to all the Homes.