Changes for Consumers Mean Easier Mortgage Comparison
Many real estate professionals know about the upcoming changes to Good Faith Estimate (GFE) and HUD-1 Settlement forms, but most consumers may not know or understand how these changes may affect their next real estate transaction.
The changes were put into place to provide consumers a standardized method for comparing charges and changes in a mortgage transaction. All lenders must use the new GFE form as of January 1, 2010, which is standardized amongst all lending institutions (including banks, brokers and lenders). The new form is quite different than prior versions and serves to summarize all costs associated with the transaction, even those typically covered by a seller.
These regulatory changes require the GFE to be issued only after a property is selected and the consumer has provided sufficient information and documentation to their lender. Most charges may not change once agreed upon by consumer and lender, while others may be allowed very slight changes depending on the circumstance for the change. The HUD-1 Settlement Statement has been amended as well to allow easy comparison to the GFE so consumers will be aware of final costs compared to quoted fees on the GFE.
Axiom Financial Mortgage Consultants are fully trained and prepared for these changes. If you want to be sure your next real estate purchase goes without a hitch, use the lender you can count on to be up-to-date on the latest changes in our industry.
As a reminder the Federal Homebuyer Tax Credit has been extended until April 30, 2010 for purchase contracts. If you, or anybody you know, is interested in purchasing during the coming months, please contact me for further information.
