I wanted to talk about three things regarding mortgages before we actually start with the various types of loans and rates, terms, minimum down payments, etc.
Three things …..
- Regardless of what type of mortgage you are pursuing, rates are still very low from a historical perspective, very attractive. Think long and hard before you purchase a primary home with anything other than a 30 yr or 15 yr fixed rate.
- The Consumer Financial Protection Bureau proposed delaying the implementation of the TILA-RESPA Integrated Disclosures (TRID) rule until Oct. 3. While this gives the industry two additional months, it’s important to remain focused on getting prepared. This is actually something as a consumer you only need to know that your Real Estate agent and Lender are keenly aware of these rule changes. With a good agent/lender team you should manage these changes seamlessly, without a knowledgeable team it could cost you dearly.
TILA…”Truth In Lending Act”
RESPA…”Real Estate Settlement Procedures Act”
TRID..”TILA RESPA Integrated Disclosures”
These legislative consumer protection changes WILL affect you as a buyer and seller, but in direct proportion to how prepared or unprepared your Lender and Realtor are.
- Please don’t think the lowest rate you can find out on the world wide web based on answering a couple questions is the best loan you can or even want to secure. There are so many other things that are clearly more important such as having a human being to assist you with the myriad of paperwork requirements, straight forward pricing regarding fees (hidden fees can kill that great teaser rate). Having a live person will help you with any life changes or rule changes that can happen during processing and can just ruin a loan package without that trustworthy human relationship.