Trend #5: New Mortgage and Servicing Rules
There is a series of new mortgage and servicing rules is in the process of being unveiled in early 2013. These rules will reshape the mortgage industry and could affect consumers, for better or worse, once they go into effect.
The mortgage industry has long claimed that many of the rules could restrict lending and the availability of capital, making mortgages much harder to get. Consumer advocates and other industry observers say the announcement of these will actually bring clarity and more certainty to the market, making loans actually easier to get. Many of the rules, which resulted from the Dodd-Frank Wall Street Reform and Consumer Protection Act, have been in the works for about two years.
The main rule released so far requires lenders to verify that a borrower has the ability to repay the loan when getting a mortgage. The rule was designed to protect borrowers from the types of risky loans that led to the housing crash. The regulation had to be crafted with caution so that it wouldn’t restrict lending and hurt the housing recovery.
“We got what we thought we were going to get, so I don’t expect any dramatic changes for most borrowers,” in terms of getting approved for loans, says Anthony Hutchinson, a senior policy representative at the National Association of Realtors.
Check out my mortgage and affordability calculators.
We’ve got New Year’s resolutions for your home that you can achieve in one step.
Resolution #1: Make the most of your storage space.
One-step solution: Donate or pitch everything you haven’t used in a year.
The first step in gaining storage space is decluttering. We’ve got ideas for how to responsibly get rid of hazardous materials, old technology, kids’ stuff, books, and more. Bonus: It won’t cost you a penny.
Resolution #2 Use less energy.
One-step solution: Install a programmable thermostat.
The bulk of your energy costs in 2013 will be spent heating and cooling your home. Put a dent in that bill with a thermostat that’ll keep your house comfortable when you’re home to enjoy it, and saves energy when you’re not. You’ll spend less than $100 for a basic model, and can save as much as $180 per year.
Resolution #3: Beef up your home security.
One-step solution: Install outdoor motion sensor lights.
These lights, which plug into ordinary wall outlets, provide a security boost by illuminating your home’s exterior when anything moves outside. They take minutes to install and cost anywhere from $13-$145.
But both buyers and sellers are often pleasantly surprised at the other resources, strategic counsel and expertise their agents ultimately provide. In a recent article from Trulia, Six Unexpected Advantages of Having the Right Agent, lists some of the biggest benefits that catch them off-guard. Let me know what you think!
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CU Realty Group, LLC | Keller Williams Realty | 821 South Neil Street | Champaign | IL | 61821