Sunday, October 11, 2015

As of October 3, 2015, mortgage and banking laws have changed. Our great local lenders are doing a terrific job of getting the word out to all of us in the real estate industry; we are doing the same for our buyer and seller clients.

For those of you who will be applying for a home mortgage in the near future (this does not apply to landloans or home equity lines of credit), please be advised that lenders must now comply with more rigid consumer protection policies. This is all good news for you. It does mean, however, that in order to close within the typical 60 days of an accepted purchase offer, all parties will have to be a bit more organized.

On the sellers’ side, we will likely be asking our seller clients if they are willing to have their propertiessurveyed, their septic systems certified and their well water tested a bit earlier in the selling process. And, do make sure that you know the location of your property’s abstract of title- a bound and usually quite thick compilation of documents that include old deeds, surveys, and bank documents. You can’t mistake this document for anything else!

On the buyers’ side – there will be new forms which are intended to be more comprehensive and easier to understand. I’ve seen them and I think they are terrific. There will be new review and recision periods, which will also require our buyer clients to promptly analyze and accept (or reject) the terms on these forms.

These changes will affect both banks and credit unions.

The take home message is that, with these banking industry changes, we highly recommend a face-to-face meeting with your favorite lender to help you get prepared for your mortgage application process.

Click here for a list of lenders we trust. They are very experienced, well-informed, and helpful.