How Will New TRID Changes Affect Your New Jersey Home Purchase?

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Today I have Matthew Northup with me, my local mortgage lending expert here in Warren. He's going to be explaining some important changes that the real estate market will be experiencing this year.

On October 3rd, changes to the TILA-RESPA Integrated Disclosure (TRID) were made, which affect everyone involved in the real estate industry, from consumers to Realtors to lenders. The Consumer Financial Protection Bureau (CFPB) issued a final rule amending regulations the Truth in Lending Act as well as the Real Estate Settlement Procedures Act.

So, what does this mean for you? The TILA-RESPA rule consolidates four disclosures for closed and credit transactions secured by real property into two different forms.

One of these forms is a loan estimate that must be delivered or placed in the mail no later than the 3rd business day after receiving the consumer's application. A closing disclosure must be provided to the consumer at least three business days prior to consummation.

These new disclosures must be provided by a creditor or mortgage banker that receives an application from a consumer for a closed end credit transaction. However, creditors will still be required to use the current Good Faith Estimate, HUD 1 and Truth in Lending forms for applications received prior to August 1, 2015. After that date, these forms will no longer be used.

Please don't hesitate to contact us with any questions about this issue. We understand that it may seem a little confusing or overwhelming. We would be happy to clear up any misconceptions that you may have!

How Does a Pre-Inspection Save You Time and Money?

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Selling a home? Click here for a FREE Home Price Evaluation 

Today I am excited to discuss an easy way that home sellers can save money on their home sale, before even selling it. One trend we have been seeing a lot of in today’s market is that buyers are really scrutinizing the condition of homes, as are their inspectors.

One easy way for a seller to save time and money when it comes to home inspections is to hire an inspector of their own, who will go through the home before it’s even listed. This “pre-inspection” can help the seller find and identify any issues up-front and solve any problems that may be found. We have had cases of sellers who had no idea they had termites or termite damage until they had this pre-inspection done. If they would have waited to find that problem, the buyer may have not purchased the house.  By catching problems up front, sellers can save money by correcting them on their own terms.

Another reason to have a pre-inspection done is that you can save up to 50% on the home inspection cost by declining the home inspection report, which takes the inspector quite a while to fill out. This way, they can just walk around the home and point out any issues that they see. It’s not a guarantee that they will find every single thing, but it is a wise investment if you are thinking of selling your home.

If you have any questions, give us a call or send us an email. We look forward to speaking with you soon!

Why You Shouldn’t Trust Your Zestimate

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Selling a home? Click here for a FREE Home Price Evaluation 

Lately, there’s been a huge rise in automatic home valuations. One of the most popular services is Zillow’s Zestimate. For both buyers and sellers, it’s important to know that a Zestimate is not an “exactimate.” A Zestimate is not as accurate as a market value. It’s based on a proprietary formula and while they are a useful guideline for your home’s value, they do not take the place of a market analysis. The market value is based on current conditions and what buyers and sellers are willing to pay.

It’s important to not get wrapped up in the Zestimate. Instead, you should get a CMA, or comparative market analysis. This will let you know what your home’s market value is, based on comparable sales in the area. Zillow even says right on their site that their Zestimate should not take the place of a CMA.

Their information is not 100% timely either. Not all of the listings on the site are actually for sale, a lot of times I get buyers to ask me for listings that are under contract, but the sellers have no intention of selling.

If you have any questions for us about this topic, or if you’d like to get a comprehensive CMA for your home, feel free to give us a call or send us an email. We look forward to speaking with you!