Mesa AZ Houses For Sale Today
I suppose if you were not in the real estate, mortgage financing, appraisals or any other service or entity that deals with the real estate economy, you would be impressed with this new Federal Law. Don't we typically believe everything we read?
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. These two Acts directly affect the Truth in Lending and Good Faith Estimate which are given to borrowers when they apply for a home loan.
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. Since many buyers were not aware of their terms when applying for a mortgage, such as APR ( annual percentage rate), length of loan, fixed rate vs. variable rate, the new law gives the buyer seven days to review these documents. Oh, I won't argue this. Typical buyers, a category in which I am included, did not fully comprehend the terms of their home loans when they entered into their agreements.
Should the annual percentage rate move upward or downward an eight of a percent while your loan application is pending, you will be required to allow another three days to pass prior to escrow being able to close on your transaction. The 3 business day rule begins all over again if Title fees are changed, since this sets off an alteration of the mortgage documents as well. The borrower must lock in their interest rate to keep these potentially endless delays from occurring.
Loan types vary, and the waiting period will be reset if the loan switches from "Fixed" to "Balloon", or "Fixed and "ARM". ARM refers to interest to amortized 3/1 ARM to a 5/ARM--or conventional loans with or without standard Mortgage Insurance.
Can someone tell me who makes up these rules? It makes one wonder if anyone had put any thought at all into how these new practices could impact the housing market.` "Time is of the Essence" is a phrase known to many people in the real estate business. Since most banks have taken over many homes on the market, this phrase has been totally abused.
Since homes takes 4, 5, 6 months or longer to close escrow in today's market, you say to yourself, what's another 3 to 7 business days? This new law will doubtless interfere with the closing date of the purchaser's new home, as the greatest challenge lies with title fees constantly changing while interest rate locks are typically only available for 30 or 45 days.
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