Home Loan Applications Started after Oct 3, 2015 will be a Whole New Ballgame

Home Loan ApplicationsIf you OR someone you know is going to buy a house in the next few months, a big door is closing on Oct 3rd… Home loan applications started after that time will be a whole new ballgame!

Unpredictable is about the best way to describe what will happen for loans initiated on or after October 3, 2015.  No one really knows how things will go! Many project that it will take at least 60 days to close a loan once the new disclosure rules are in force – versus a norm of 21 to 30 days today.  October and November closings for real estate transactions will likely be an adventure as all parties involved adjust to these new regulatory changes.  Honestly… times like these are when we will find out who the real professionals are! “Adversity doesn’t build character it reveals it.” Vince Lombardi

What are the New Rules?

Consumer Financial Protection Bureau

Here is a link to the changes coming from the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

What is likely to change?

Increased document security, longer disclosure timeframes and new closing forms. Closing Attorneys have been bracing for this for months. Just imagine attorneys hiring attorneys to advise them on how the new rules could possibly affect them. Offices have had to be reconfigured to prevent the accidental viewing of sensitive documents. The universal standard HUD-1 Closing Form is being be replaced. The lenders will not be able to deliver money as fast due to increased disclosure requirements and notices.

The CFPB is a relatively new regulatory entity with broad enforcement ability and the penalties can be stiff.  This adds up to unknowns and risk. You can rest assured, no one is going to go very far out on a limb to help you borrow money until the dust settles.

What can you do?

Home Loan Applications

Buckle up! Make loan application before October 2nd if you plan to buy a house in the next few months. That way you will be “grandfathered” in under the current system.

Where do you start?

If you haven’t already, call your Realtor for a recommendation to a great lender. We have a great starting lineup of lenders who have proven to be the best in the industry. Talk to the lender about your plans and get them to coach you through the process.

Questions?

We are happy to answer questions if you have them. Just email us at michael@BunchRealEstateGroup.com

Michael Bunch is a Real Estate consultant, Life Coach, Strategist, Leadership Junkie and Writer. His real estate sales team works out of Atlanta, GA but through his connections, Michael can help you make great real estate decisions all over the world! His focus is long-term, clients first and legacy minded.

Please note: I reserve the right to delete comments that are offensive or off-topic.

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