Buyers: Don’t Let Halloween Creep Up On You
Conventional wisdom is that spring is the best time for selling—and buying—a home. It’s the time of year when the most home are on the market. In fact, lots of buyers believe that if they haven’t found the home of their dreams by the end of the summer, they’re stuck in their nightmare for two more seasons. They think they don’t have a ghost of a chance getting into a place before the holidays.
Don’t be tricked: That’s simply not true.
For motivated sellers, there’s actually no bewitching hour before the end of October.
While it is the case that some sellers will take their home off the market in anticipation of the winter holidays, for those needing to sell, October is still the perfect time to show their home and even offer discounts to well-qualified buyers.
It’s a great time for you to get treats instead of tricks!
According to a survey of more than 30 million sold homes over the last 15 years, October buyers save, on average, 2.6 percent on the purchase price.
This year there is an even better treat … interest rates have remained at historic lows while the economy improves. Most analysts believe that rates will begin to rise by year’s end or early into next year. Getting a mortgage now insures that you’re taking advantage of the best rates available.
Speaking of treats, another advantage is being able to take tax breaks, discounts on upgrades to energy-efficient systems and more.
No tricks, all treats!
Even better than tax breaks, you’ll be able to enjoy less paperwork as new regulations for required buyer forms begin. The information formerly required by four forms was merged into just two, reducing time and confusion for buyers. The new process protects buyers from “tricks” at closing that change the deal.
- The new rules required by the Consumer Financial Protection Bureau, became effective Oct. 3.
- The Good Faith Estimate and Truth in Lending disclosures are eliminated and combined into the single Loan Estimate form.
- Buyers must receive the Loan Estimate no later than three business days after receiving the application.
- The Closing Disclosure form replaced final Truth in Lending Disclosure and HUD-1 Settlement Statement and must be provided to the buyer 3 full days before closing. Any changes during that 72-hour period can delay the closing. This change protects the buyer from the current process that allows the HUD-1 Settlement Statement to be presented to the buyer as late as the day of closing. It stops changes being made to the statement during the loan closing.
- The new rules streamline the loan application process. They make it easier for consumers to clearly understand the costs by detailing all relevant details on a single page: (1) the interest rate of the mortgage loan, (2) the amount of the monthly payments and (3) a listing of all the closing costs.
- Consumers applying for adjustable rate mortgages now have documents that explain how their interest rate and future monthly payments could change based on various certain factors.
The best treat of all!
Your family will appreciate being in a new home for the holidays too!
Compliments of Virtual Results