Buying a new home can be confusing and complicated at the best of times. All the paperwork, financing equations, and interest rate extrapolations are enough to make even the most patient potential home owner gain a few gray hairs. Thankfully, the Consumer Finance Protection Bureau, or CFPB, is taking steps to relieve the stress of buying a house with a new initiative called “Know Before you Owe”.
The new “Common Sense Laws” will simplify the lending process for everyone, from the consumers and lenders to the mortgage brokers and settlement agents. The current initiative is based on the Dodd-Frank Act — a combination of the Truth in Lending, and Real Estate Settlement Procedures — to form a simple and easy to read lending procedure. Woah! Thats a lot of words, but don’t worry, it’s all in the spirit of simplification. In layman’s terms, all of this means that consumers applying for loans will have an all around easier time understanding what would otherwise be hidden away in the fine print.
To put it simply, the trendy new loan regulations are step forward in helping new home owners have a leg up on finding a new home. The revised documents are laid out in a concise, easy to read format that is split up into three sections. The loan terms, including the loan amount, interest rates, monthly principal and interest prepayment penalty. Projected payments, which puts all the complicated mathematics involved with acquiring a loan into easy to read terms that everyone can understand, and finally the cash to close section, briefly outlining the estimated closing costs of the mortgage.
The result of the CFPB’s efforts to streamline the loan acquisition process drastically cuts down the time and effort it takes to get your mortgage set and settled so that potential buyers can hit the ground running, getting them into their new homes in no time flat.
If you or your family would like to take advantage of these bold new reforms by the Consumer Finance Protection Bureau and have a look at some Stephenville homes for sale, feel free to contact us today!