Comparing The True Cost Of Obtaining A Home Loan
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
Latest News
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 Yahoo | US MBA’s Mortgage Applications More Than Doubled Last Week Bloomberg - The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan jumped 112 percent to 857.7, the highest level since March, ... FINANCIAL STOCKS Bulls outlast bears in Wednesday grudge match Falling rates spark rush to mortgage applications UPDATE 1-US mortgage applications post largest gain ever |
Lower mortgage rates help but jobs, prices key Reuters - Applications to buy and refinance homes hurtled higher last week as the lowest rates since the summer of 2005 unleashed pent-up demand. ... |
 Boston Globe | Geithner May Seek to Push Bair Out After Clashes During Crisis Bloomberg - ... that contributed to the subprime mortgage mess. This year, Bair has proposed using taxpayer funds to help refinance loans for struggling homeowners. ... Mortgage proposal has faced conflict |
US Economy: Service Companies Shrink at Record Pace (Update1) Bloomberg - “Things overall still look bad, but this, together with last week’s doubling in MBA refinancing, provide glimmers of hope,” Ian Morris, chief US economist ... |
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UPDATE: Builders Soar On Lower Rates, But Pain Persists CNNMoney.com - As consumers raced to lock in lower rates, applications to refinance existing loans jumped 203.3% last week from the week before, while mortgage ... "Good" news on housing |
Mortgage Brokers: Now Is Good Time To Refinance MyNC.com, NC - By Lauren Hills, NBC17, 14 hours, 38 minutes ago While most money matters aren't looking up right now, if you're looking to refinance your home, mortgage ... |
Fresh Data Is Sour Forbes, NY - 28, from the previous week's 404.4 reading, according to the Mortgage Bankers Association's survey. Refinance volume more than tripled, accounting for 69.1% ... |
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