Know Before You Owe

Know Before You Owe | by Jim Catalano

The “Know Before You Owe” rule went into effect on October 3.

This new rule was championed by the Consumer Financial Protection Bureau (CFPB) and requires specific timeframes for consumers to receive and review their Loan Estimate and Closing Disclosures. The new home loan procedures also provide streamlined forms that spell out in plain, understandable language a borrower’s monthly payment, costs of getting a mortgage, the costs to close the loan and other information about the loan.

While all of this is great for homebuyers—to know before they owe—any changes made throughout the loan process could delay closing in order to meet required time frames. Consumers can minimize closing delays by conducting home inspections early, clearing loan contingencies as soon as possible and scheduling a final walk-through before the Closing Disclosure is issued.

The key takeaway here is to avoid last-minute loan changes that could put your anticipated closing date in jeopardy.

Just A Thought

As we see our world in chaos, our prayers are with the people of France. It is also a good time to reflect on the sacrifice our Veterans have made, many with their lives to protect our freedoms and way of life. My heart was saddened watching the following video of a homeless man who is a Veteran, and the disbelief that this could happen in America. The idea behind this video is to raise awareness for our homeless veterans. You can learn more here.

I hope you will find a Veteran, give them a hug, thank them, and then buy them lunch or put some cash in their pocket.

Market Update

Home prices rose 6.4 percent in September 2015 compared to a year ago according to CoreLogic’s Home Price Index Report. Sales of existing homes rose 4.7 percent in September from August, and they were also up almost nine percent from September of last year. And, even though New Home Sales for September declined, sales are still robust compared to a year ago.

The chaos abroad and the uncertainty in the markets will have the Feds keeping a watchful eye on economic data the coming weeks. Due to weak job creation in September and other disappointing economic data the Feds have left the Federal Funds Rate unchanged. This is what banks use to lend money to each other overnight. When the Fed Funds Rate increases, the result is usually higher home loan mortgage rates that follow.

Let me help you accomplish your mortgage financing goals.

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