Tips for Home Buyers (CFPB)

When it comes to search and compare mortgages, it should be easy to find consumers the information they need to make good decisions. Standards of the CFPB simply require lenders to document the borrower's ability to repay the loan and to follow other common sense rules to protect consumers. The CFPB standards ensure that any person receiving payment to help you find a mortgage, treat fairly during key moments of the process. The rules empower it to search and compare loans to buy and own a home with more confidence.
Tip #1: Only you can decide what amount of your mortgage payment is comfortable. The new mortgage rules will make the market safer and easier to understand. For example, lenders now have to make a good faith effort to determine if you have the ability to repay the loan. They can comply with this standard by making a loan called "mortgage qualified" ("qualified mortgage, or QM" in English) which has no senior positions and certain characteristics of risk such as negative amortization or interest-only periods. But in the end, only you can decide with what mortgage payment amount is comfortable. Tips for home buyers.

#2 Tip: Use the market information. You will receive a copy of any appraisal ("appraisal") at least three working days before the closing. The appraisals can give you an estimate of what is worth a House. You can also obtain their own independent appraisal. If pricing is well below the price it offered to pay, you might want to carefully consider the renegotiation of the price or the review of the work of the appraiser to understand how the appraiser came to the estimated value.

#3 Tip: Get reliable help. Any company that receives payment to help you find or obtain a mortgage should empower their agents, brokers and loan originators and make sure that you have passed a background ("background check") check. With few exceptions, people who hire to help you find a mortgage must have license or be registered at State or federal level. Ask your loan originator about their credentials.

#4 Tip: Watch out for the charges. New mortgage regulations of the CFPB limit charges that a lender can charge and do what is called a qualified mortgage. In general, qualified mortgages do not have particularly risky features and points and fees are less than 3% of the total loan, although charges may be higher for loans of less than $100,000. These rules don't require lenders to limit charges. You still have to decide for itself whether it is good idea to pay high fees to get a loan. And be sure to check your closing statement carefully to be sure that there are no charges there that did not accept pay.