Loan Paperwork Changes Embraced by Homebuyers


Posted by Anonymous

Some mortgage brokers say their clients are more engaged in the process and are asking more questions.It looks as though the newly crafted good-faith estimate is doing more than keeping closing-cost surprises at bay. Changes to the loan paperwork seem to be creating more informed homebuyers, according to The New York Times.The three-page document takes the place of the one-page good-faith estimate that was partially blamed for contributing to the housing crisis. Questions can seem like no-brainers now, but at the peak of the housing boom, several homebuyers were persuaded into unknowingly agreeing to such loans.These details of loans are front and center in a document that decreases significantly on the legal speak. Some brokers state the new document still leaves several questions unanswered.The changes also come with some new rules about how much fees can increase between the time buyers sign the paperwork and when the deal closes one to two months later, in addition to a new document. It’s still not a perfect process, even though there’s now a cap on increases in costs listed on the good-faith estimate.Source: msn.com



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