mortgageFormA significant change to the time-tested mortgage and settlement procedure was implemented two weeks ago throughout the country, designed to streamline the process for consumers by clearly stating how much a buyer will be expected to pay, among other things. However, early reports from lenders and brokers are showing that the process is making things slower, and the costs are trickling over to homebuyers.

The federal Consumer Financial Protection Bureau imposes heavy fines on lenders if the information they provide a buyer is inaccurate or if estimates are incorrect. While it’s a given that the typical time span between loan application and the final closing would take longer, an item that is largely being overlooked is how a longer timeline will affect how much consumers pay. Because the majority of buyers prefer a long rate lock period, these will ultimately cost a buyer more money. Such rates were usually for about 30 days but are now being increased to a minimum of 45 days, a number that can easily add $500 to an average loan request.

Here in Florida, the state’s As-Is contract is highly dependent on dates and can to a certain extent relieve a seller or buyer of contract liability, even if the deal is only halfway complete. With these changes and longer timeframes, it’s imperative that homebuyers find a knowledgeable realtor who can help them understand these recent changes and how they can affect the overall costs of homeownership.

Realtor Jon Gilman specializes in Sunny Isles Beach Florida real estate including Sunny Isles condos for sale. For more information on properties throughout the barrier island or Sunny Isles homes for sale, call 786.486.9560.