GETTING A MORTGAGE? HOW ABOUT A PAUSE?
The other week I was talking with a real estate agent who is very smart. Smart and intelligent.
We were discussing the hot topic of the day, month, and year: the state of the mortgage industry. We eventually got around to the various ways to fix the problems. We all know that the government would get involved, for better or worse. Here in Illinois, for example, the state government passed Public Act 095-0691, and the federal government has passed the Stimulus bill which includes sections about mortgage reform as well as mortgage “fixes.”
The Illinois law would effectively either slow the mortgage process (for someone buying a home) or even possibly stop loans. Those (in the government) who would be reviewing a loan application would not be consciously or intentionally stop the loan, but the review and time to get the review done might (and this is the key word: might) cause 1. sellers to find another buyer, or 2. discourage good buyers from moving forward. And thus everyone loses: buyer and seller, seller and buyer realtors, attorneys, loan officers, the city, the state…..
So…what is the point of these laws? There are many, and it’s complicated. So the realtor and I came to this point and he said, “Well, isn’t it (the law) for us to pause?”
Hmm…let me take a second to think about this………..
The one positive outcome of all the reforms, bills, and laws, for now and just before the borrower signs the application documents, is to take a moment, pause, and think. Is this the right loan program? Will this leave me financially stable and in a position to pay my bills? If something happens for the worse, am I ok?
Hmm…some things to think about? Thanks Zeke.
RSS Feed
Leave a Reply