Home buyers are often confused about where to begin in their search for a home loan. The process is usually narrowed down to finding which institutions provide the lowest settlement costs, but the different types of lending institutions and the variety of lending programs available can make the search a slow, difficult experience.
Real estate settlement costs are fees buyers normally pay when purchasing a home such as legal services property insurance, mortgage loan financing and title services. In the past, consumers would have to call each lender, request an estimate of their settlement costs and compare all of the results to find which lender offered the lowest total settlement costs.
The Department of Housing and Urban Development, however, recently revised the Real Estate Settlement Procedures Act (RESPA) which now makes it easier for consumers to estimate various settlement costs through computer loan origination programs. In this manner, consumers can access a computer listing of various programs offered by lending institutions.
The computer search speeds the process of reviewing various programs and allows participants to arrange financing with the listed lender. Buyers using a computer loan origination program may be required to pay a fee for this service, but many buyers feel the convenience outweighs the cost. Still, the new RESPA changes require a real estate broker with a computer loan origination program to inform the buyer that the service is only an option and that non-listed lenders may offer lower rates or fees.
The new Federal Regulations also permit real estate brokers to offer more comprehensive services to home buyers by allowing brokers to enter into controlled business arrangements with other companies associated with the home buying process. Real estate brokers were always allowed to refer buyers to lending institutions, title companies and escrow companies, but they were not permitted to accept compensation from those institutions for giving a referral. The RESPA changes now allow real estate brokers to enter into partnerships or actually open their own mortgage service institutions. This allows brokers to provide virtual "one-stop shopping" by handling the entire settlement process.
RESPA changes were made to help home buyers learn about and obtain mortgage services more conveniently. Since RESPA helps consumers to understand the process of home ownership, the regulations may encourage more potential buyers and further stimulate the real estate market.
About The Author
W. Troy Swezey is the author of "COMPARING THE TRUE COST OF OBTAINING A HOME LOAN." As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, "REAL ESTATE SECRETS EXPOSED." http://www.TroyIsMyRealtor.com or mail to: TroyC21@usa.net
Every year over 8 million homeowners are seeking help preventing... Read More
When the time comes to do work around the house,... Read More
So you have a mortgage on your home or planning... Read More
"Own your home free and clear in 3 to 4... Read More
If you're thinking about taking out a home improvement loan,... Read More
If you are looking to refinance in New York, it... Read More
Finding the best mortgage lender online is simply a matter... Read More
What does it mean to refinance? Why would anyone want... Read More
Home equity loans can be a great idea for individuals... Read More
A home equity loan can help repair your poor credit... Read More
For many seniors one of their greatest sources of security... Read More
Buying a home with bad credit doesn't have to stop... Read More
If you are considering a new home loan anytime soon,... Read More
Households across the country are finding themselves in a similar... Read More
Having just settled in life, you are finding the rentals... Read More
Before you start looking for a home, figure out what... Read More
You're selling your home and are looking to relocate to... Read More
With today's relatively low interest rates and climbing property values,... Read More
Chances are you may need a little extra money to... Read More
One of the most common terms found in a new... Read More
Perhaps you're a homeowner in need of some quick cash.Maybe... Read More
If you watch enough late night television, you'll see advertisements... Read More
As the term implies, with a fixed rate mortgage the... Read More
Are you excited about purchasing your first home? Or maybe... Read More
Here is a useful guide to interest only mortgages. An... Read More
You can maximize your savings by shopping for a lender... Read More
Before you start shopping around for a mortgage, you need... Read More
A 2nd mortgage loan after a bankruptcy is possible in... Read More
For the last two years, interest rates have been much... Read More
A mortgage lead is an exciting thing because you are... Read More
Some people in the real estate industry have a terrible... Read More
You've been looking at houses for months, and finally you've... Read More
You've undoubtedly heard or seen ads for mortgages with very... Read More
Home equity loans give individuals a tool to extend their... Read More
If you're looking for a cheap homeowner loan, you might... Read More
You've found a house that is perfect for you. It... Read More
Mortgage rates can either be fixed for the duration of... Read More
The financial stories remain similar over the months and the... Read More
In days gone by, the family typically spent their evenings... Read More
1. Save on your income tax.Yes, something good can come... Read More
Refinancing your home mortgage can come with some great perks.... Read More
With so much lender advertising focusing just on rates, you... Read More
If finances had a copyright, we would have bought it... Read More
Online home mortgage quotes are very similar to the quotes... Read More
Getting home loans is possibly the biggest step in an... Read More
While trying to find the lowest rates, many homeowners fail... Read More
If you owe 40 percent or less of your original... Read More
Before I go further, let me ask a question- if... Read More
Refinancing your mortgage after bankruptcy is actually the same as... Read More
You may think that applying online for a mortgage is... Read More
Most borrowers have heard of FHA home loans. They are... Read More
Have you ever heard of a mortgage broker before? If... Read More
It isn't difficult to get a homeowner loan if you... Read More
A commercial mortgage is a loan that uses commercial property... Read More
Everybody wants to own a house because it is something... Read More
Owning your dream home need not just be a dream.... Read More
Unfortunately, most Americans still do not understand how home loans... Read More
Well, we did it. We are buying a beautiful, brand... Read More
Interest rates are on the rise and many home owners... Read More
So you have been through a bankruptcy and surely have... Read More
Before you borrow money on your home's equity, think twice... Read More
When buying a home, you need to take a home... Read More
Maybe you've heard the expert advice that your debt to... Read More
Finding the right buy to let mortgage is crucial to... Read More
Households across the country are finding themselves in a similar... Read More
More and more of use are signing up for limited... Read More
Mortgage Refinance |