A recent report, published by the Consumer Financial Protection Bureau, summarizes the biggest challenges which borrowers face when they apply for mortgages. There are so many borrowers who until the end are not very certain about mortgages and still have their doubts. Come closing time, and all of them are confused and frustrated. The pressure is definitely on them because they are supposed to sign paperwork which they have not gone through thoroughly or do not fully understand.
The Consumer Financial Protection Bureau is already aware of the challenges borrowers face and is working to ease the mortgage closing process. The best way consumers can handle the situation is to ask plenty of questions and prepare themselves beforehand is the advice of a mortgage loan officer who works at a reputed financial agency. He added that lenders are at fault too and assume that consumers are aware of everything. This is just where the problem is; consumers hardly know anything and until they ask questions, they never have the rights answers or enough information.
At the start of this year, CFPB asked consumers to share challenges which they find the most difficult when buying a home. The responses put forward three important problems; less time, too much paperwork and lack of understanding. And the icing on the cake was the fact that real estate professionals do not help as much as they should.
So does the situation sound worrying to you? Actually, it is. The good thing is it will end when the new mortgage laws go into effect next summer. Buyers will be given new closing documents that will contain simpler clauses. Moreover, buyers will have access to these documents at least three business days before the scheduled closing dates so they have more time to clear their doubts and compare rates.
A source from the CFPB told the press that an EClosing program is also being initiated with has been designed with buyers’ ease in mind. The source was hopeful that the program will reduce a lot of pain on the part of consumers.
Another industry professional had similar thoughts to share. According to him, electronic paperwork was a promising alternative. Consumers could quickly skim over the main points rather than read the whole thing.
So if you are planning to buy a home before the new law goes into effect, go through the documents and ask your loan officer anything you do not understand.