The Federal Government’s Consumer Financial Protection
Bureau (CFPB) recently released a Home
Loan Toolkit, a step-by-step guide through the mortgage purchase process,
for consumer use. This is a must use tool for real estate professionals to
create realistic expectations for their clients and customers.
This toolkit helps consumers to:
- Calculate affordable monthly mortgage payments;
- Understand the importance of credit scores to obtaining better mortgages;
- Pick their mortgage type;
- Choose the best down payment amount;
- Shop with different lenders;
- Understand and know about issues that may arise;
- Choose a mortgage closing agent; and
- Understand the overall closing process.
This Home
Loan Toolkit has fillable text fields, buttons, and list boxes, allowing
consumers to update the toolkit as they work through the process. It is
designed to be much easier and more accessible version of the existing Settlement
Cost Booklet that is currently provided to consumers and should be used in
connection with the new (and simpler) Loan Estimate
and Closing Disclosure forms that will be effective on August 1, 2015.
Though creditors are required to provide the toolkit to all
potential homebuyers, the CFPB encourages that real estate agents understand
and provide this toolkit to their clients as well. The more informed the
parties, the smoother the real estate transaction will go.
