North Texas Real Estate Blog

Buying your new Southlake TX home can be a very exciting time in your life for you. With higher than average property values in Southlake TX versus other cities in Tarrant County, the financial responsibility and obligation for a buyer are considerably high. Making sure that buyers are aware of the cost of owning a particular home is essential to help prevent future delinquent mortgage payments or possible default. Since buying a home is one of the largest investments most individuals will make in their life time, determining whether or not the loan you are getting fits with your personal financial situation is essential.

Effective July 30, 2009, new rules were implemented that are designed to help borrowers determine whether or not the loan they are applying for best suits the borrower’s current financial position. The changes are an attempt to keep the borrower better informed on the cost and payments of their loan and hopefully eliminate surprises at closing time.

One important change requires the lender to disclose to the borrower the cost of their mortgage within three days of their loan application. No fees, with the exception of a fee to perform a credit check, are to be charged until all loan cost disclosures have been made.

The days of quick closing loans are now a thing of the past. After their initial disclosure is provided to the borrower from the lender, there is a seven day waiting period. This gives the borrower the opportunity to consider the costs of purchasing their home, and provides them the chance to reconsider and terminate the application. The final disclosures which had been provided at closing, which disclose the annual percentage rate of their loan, are now provided to the borrower three days before business days before closing. This gives the borrower an additional chance to review the costs and their obligations and either proceed with the purchase or terminate the contract.

While all this legislation designed to protect the buyer is beneficial to the borrower, home sellers need to be aware of these new rules, as they may contribute to delays in the closing and funding of their homes. It is important that all real estate professionals that represent buyers and sellers be aware of these changes and team up with proven lenders that are on top of these new federal rules. Making sure that all disclosures are provided on time and good communication between both sides of the sales transaction is essential to the successful sale of homes.

Please contact Dave or Betty Warden at 817-706-3291 for more information about buying or selling a home. We are teamed up with experienced lenders that will do their very best to close your home in a timely manner.