As we pointed out recently, the first time homebuyers credit is winding down and it's our job to make sure that clients who are ready to buy beat the clock. As it happens, there are several things in play that could throw off the timing. New regulations regarding mortgage disclosures and appraisals are adding time and cost to the sales process.
The new alphabet soup regulations - HERA, HVCC, and HOEPA - have all been put in place to prevent some of the abuses that led to the mortgage meltdown and trapped many buyers in loans they did not understand. The intent was good, though many agents feel that the appraisal regulations in particular are burdensome to the consumers the regulations were set up to help and to the real estate agents who would like to help them. There is a great likelihood that the appraisal changes will either be shelved for a while or modified, but right now they are the law.
Our job as agents then becomes to clearly lay out the costs and the timelines our clients need to follow to achieve a smooth and timely closing. We need to encourage our clients to hang in there even if the appraisal comes back too low or the bank demands more documents or more down payment and show them a strategy for moving forward. Our clients should know that we are their strongest advocate!
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