Real Estate in West Orange
Marsha Bowen Washington
973-510-0014973-510-0014

New Mortgage Rules in Effect October 3rd: Tips For First Time Home Buyers

New mortgage rules will kick in for mortgage lenders to comply with home buyers.   Here are some tips to reassure your chance of getting a mortgage is not diminished:

  • Be careful making any big purchases on credit before you close on your home.  Even financing a new refrigerator could present a problem
  • It takes about 30 days or longer to correct errors on your credit report, it’s best to correct errors before you apply for a mortgage not after.
  • Many mortgage borrowers with (ARM’s) adjustable rate mortgages underestimate how much their interest rates can rise, it’s important to understand
  • Make sure you understand the terms of a risky loan (ballon payment, prepayment penalty).
  • Make sure you understand your costs by reviewing your closing disclosure statement.  Settlement services may feel like a drop in the bucket compared to the cost of the home.  But in some states borrowers who shop around may save hundreds of dollars.
  • Determine if you need flood insurance prior to signing a contract.

Buyers should also avoid the following pitfalls:

  • Don’t sign documents where important details are left blank or documents you don’t understand.
  • Don’t assume you are on your own – get help if needed by contacting a HUD-approved housing counselor
  • Don’t take on more mortgage than you want or can afford.  (If the mortgage is above  31% of your income, beware)
  • Don’t count on refinancing, (this promise is what led to some homeowners going in to foreclosure during the financial crisis)
  • Don’t fudge numbers, (stand in your truth of your income, it’s about what you are making now, not about what you will make in 24 months)
  • Don’t hide important financial information (not disclosing financial obligations can come back to haunt you if the lender finds out)
  • Don’t use or tamper with money in bank accounts that will be used to purchase a home.

By taking the above steps, this will make it possible for home buyers to have a smooth and painless closing on your home purchase with the new rules in place.

Want more details on the new CFPB mortgage rules, click here

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About Marsha Bowen Washington

Picture of Marsha Bowen Washington

Marsha Bowen Washington

Realtor/Sales Associate

marshabwashington@yahoo.com

973-510-0014973-510-0014 main

Coldwell Banker Residential Brokerage

2 E. Mt. Pleasant Avenue Livingston, NJ 07039

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5ChristinaPamplin

Marsha was highly professional and knowledgeable about the real estate market. She made me feel very confident that I was in good hands. When I began to feel nervous and stressed, she stepped in and assisted with following up with my lender and attorney to... (more)

5Yetta Armstrong

Marsha Bowen Washington is the real deal! She's knowledgeable, friendly, patient, committed, and caring. My real estate venture was very challenging and Marsha stuck with me throughout the whole process even though I extended my search outside of her... (more)

5vinagda

if Marsha had anyother skills besides real estate, my husband and I would use her in those areas as well. She has such calmness that the worst clamity, seems nothing when she is dealing with things. It was the most effortless journey and a pleasure working... (more)

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