As I understand,the new rules for closings, that were supposed to take effect Aug. 1st, 2015, have been postponed a couple of months. No matter, it's coming. The days of 30 day closings will be over. It will be 60 days, if we're lucky. The closing settlement statement will be simpler, but that's where the good news ends. Pre-qual letters from lenders will be worthless. ( They already are from some lenders). The information on the pre- quail will only be what the potential buyer supplies. If they leave out something, it won't close. They must be pre- approved, which means the info has been verified. The lender can only do this after the potential buyer has signed a series of disclosures and has an address for the prospective property.
Now, for us new construction folks, there is an added problem. The buyer must sign off on inspection and punch list items 6 days before closing. This gives them 6 days to pick the house apart again, and, if they do, the six days starts over again. A nightmare!
Long story short: when the government sticks it's nose into any business, they will screw it up.this is no different. The theory is good, but, in practice, it's a bad idea.
Why does it take anybody with more than a third grade education 6 days to review a settlement statement? The potential buyer is under contract to purchase the property. They chose their lender. If the lender has put some stuff in there that costs more money than anticipated, why should the seller suffer?
Many buyers will not understand why they are paying so much interest over 30 years. Guess what? You probably won't be there in 30 years, since the average person moves about every 5.2 years.if you are a 70 year old buyer, what do you care about what a 30 year mortgage will cost over time?
Thanks again for reading my rants. Steve Houck