Today, I want to share some news with you that is going to rock the mortgage and real estate world!
Starting August 1, new federal guidelines will impede our ability to transact real estate. It’s likely going to take 6-12 months for everyone to get used to. The HUD-1 Statement, the document that declares all the financial aspects of a real estate transaction, now must be completed 3 full days before closing. This means we can’t get a clear-to-close on a Thursday and close by Friday.
If you’re trying to organize a buy and a sell in the same day, you better hope that both sides of the transaction have completed the HUD-1 form and have had it cleared. You need to make sure your real estate team, your lawyer, and your mortgage professional are all on track and understand the closing time frame. Next, you need to submit all of your documents to your mortgage person and attorney up front;make sure you get your mortgage lender everything they ask for because anything that comes in last minute could change the HUD Statement and delay closing.
Another thing to keep an eye on is the cost of fees. Due to these changes, home buyer fees have become much more expensive, perhaps by as much as $2,000. That being said, stay tuned for our next video where we discuss more positive trends in our market, such as fantastic rates and improving conditions.
These recent changes will require an adjustment by everybody, but we’ll get through it. Give us a call if you have any questions about the new federal guidelines, or if you need real estate assistance of any kind. We would love to help you out