Heads Up: New Mortgage Rules

If you’re in the market for a home you should be aware that new mortgage rules went into place over the weekend. The New York Times has a good round up on them in New Mortgage Rules and How to Make the Most of Them:

BEGINNING Saturday, applicants for most home mortgages will receive new forms from their lender that are intended to make it easier to review and compare loan offers.

Along with the updated forms, new rules aimed at simplifying the borrowing process for consumers will take effect.

Mortgage applications submitted through Friday are governed by the old rules, while applications submitted on or after Saturday will fall under the new rules.

At least initially, consumers may encounter lengthier waits to close on the purchase of their home. Thirty-day waits are now common in some markets. But 45- or 60-day waits may become more common as lenders familiarize themselves with the new rules, according to Bob Davis, executive vice president of the American Bankers Association.

Overall, good for buyers, but if you’re buying a place this fall there might be some growing pains as you go through this new process.