Ohio’s House Bill No. 463 goes into effect on April 6, 2017. This changes how title companies can accept Good Funds for Real Estate transactions. H.B. No. 463 is requiring funds in excess of $1,000 be in the form of a wire transfer. Wire transfers are different from ACH (a.k.a. Direct Deposits or Person to Person transactions).
- Wire Transfers are more costly.
- Wires are the most secure type of funds.
- Wire Transfers are also the quickest to transfer money.
I Am Paying What?
In interest of full disclosure, TRID (TILA-RESPA Integrated Disclosure) details ALL the costs into the closing document. Even costs the buyer is not paying for. This is confusing when someone at the closing table trying to make sense of the numbers.
I had one guy say; our contract states $200,000 so why am I seeing $204,899.31. Good question. We had asked for closing costs to be paid in the contract and what the loan amount and what he was bringing for a down payment added up correctly to the $200,000. (My only saving grace.)
Consumers want to see that they are paying what they agreed upon in the contract especially if other concessions were given like closing costs or there are other items the seller picks up.
It is hard enough to get to the closing table; but, when we have numbers that don’t add up to client’s expectations, it makes it difficult to explain. Luckily, the closing agent and I were able to put the client’s mind at ease; but, it was a tense moment. I’m not to sure if TRID really has made it simpler for the consumer.
Are You Qualified?
Did the loan officer really pull your credit? Are they really looking at your full financial picture? Be aware that Pre-Approval is different than a Pre-Qualification. Heck even those terms can be interchanged. Unfortunately, some mortgage loan departments do not look at your full picture.
One loan officer that I had contacted recently because my client wanted to do a Ohio Housing Finance Agency (OHFA) loan, which is a special loan that need loan officers who are on the ball. She took a look at my client’s credit and said that she wouldn’t have been approved through her first lender that she obtained a “pre-approval” because of her credit had a tiny blemish that prevented it to be able to be approved for even a Federal Housing Administration (FHA) loan! Now, she has to wait for her credit to improve, which unfortunately takes 3 to 6 months for the tiniest of changes to happen in the positive. When you buy something, boy, that hits your score toot sweet. Why? Only the credit gods know.
Contact me. I have recommendations that do check your credit and will help point you in the right direction if the credit needs to be tweaked!