Congratulations to my sellers, Beth, Adam and Lola!
It was 2011 when I met Beth and Adam. They were young and fun and ready to be home owners. Beth was excited, but she was also a very serious buyer who knew what she wanted. She wanted a new home and she wanted to pick out colors and styles. So away we went with the home building process, and in the end, they had a hand in building a home they loved. This was not only their first home, but it would be their first time working with new construction. I was amazed at the smart decisions they made and how they kept their costs within the budget they had carefully planned.
Four years have passed as Beth and Adam watched their neighborhood grow around them. With life comes changes, and we listed their home for sale at the end of September. Although our market has slowed a bit since this spring and summer, we received an acceptable offer in just two weeks! Getting a great offer is not only due to the design selections Beth made that are still current and stylish, but also because of how they’ve taken care of their home during their ownership!
Although I’ll miss you Beth, Adam and Lola, I wish you the best of luck with your move and a wonderful life in your new location. Thank you for being two-time clients! You’re the best!
Something I value most in my real estate business is the relationship I build with my clients. When a previous buyer or seller comes back to me for their next move, I know I’ve done a great job.
Unless you’re paying cash for a home, (hahahaha!) you’re going to be working very closely with a mortgage lender when you’re ready to buy. If you don’t know one, your Realtor can recommend one because most Realtors have a few favorite lenders they work with regularly. Here’s the beautiful thing about my relationships with lenders; they don’t try to show homes and I don’t try to figure out the details of your loan.
However, everyone is working hard to understand and be ready for some new changes that were implemented on October 3rd. The Consumer Finance Protection Bureau’s ‘Know Before You Owe’ mortgage disclosure rule came into effect last Friday. I’m not going to go into exactly who the CFPB is or what this new rule called TRID really means because you probably don’t care and it’s all really boring.
What you need to know is, these changes will affect you and your closing date and here’s why…
This new rule not only brings into effect new mortgage disclosure forms your lender is required to use, which I’ve detailed below, it will also change the way real estate transactions are processed by your lender from the loan application to the closing.
The first new form is designed to help you understand the details of taking out a home mortgage. It’s called a Loan Estimate (LE) and you will receive it no later than 3 business days after the initial application.
In addition, you will receive a Closing Disclosure (CD), which will give you detailed information regarding the terms of the loan. This document will be provided three days prior to closing.
These two documents will provide all the details about your loan, including your monthly payment, the costs of obtaining a mortgage and the costs to close that loan.
Sounds good so far, right? The potential downside is, the regulations being implemented are going to impose new waiting periods between the time the borrower submits an application and the actual closing date. And, if certain changes are made to the annual percentage rate or to the loan product after receiving the CD, additional waiting time is added.
How this translates to the buyer is that certain changes or missing documentation can cause a delay in closing. More often than not, buyers and sellers want closing to happen as quickly as possible. These new lending rules just changed your typical closing from a 45 day span to a 55 to 60 day period. Any multiple sale transactions wherein a seller is selling and then buying are going to have to be handled very carefully and may prove to be a bit more difficult than in the past.
There’s no reason to panic, change happens all the time, and quite often in this industry. I think what buyers will notice are their lenders stressing the need for all documentation to be handed in as quickly as possible. They’ll also hear their Realtors telling them there’s no such thing as a “quick closing” anymore; at least until we’re all more acquainted with the new rules.
This information is just a highlight of the process of applying for and obtaining a loan. If you’re ready to begin the process and have any questions, feel free to contact me. I’d love to help you get started.