As the new 2016 President of the Stark County Association of REALTORS®, I am thrilled to be able to come to you each week this year to share up to date, relevant information that may help you when making real estate decisions for your family. For many of us, purchasing or selling a home is one of the biggest financial transactions we will ever under take. The more knowledgeable you are, the easier it will be.
Since October 3, 2015, changes have been implemented at the federal lending level, affecting almost all residential real estate purchases funded with a federally related mortgage loan such as VA, FHA, and many conventional mortgages, to name just a few. These new changes were adopted for the benefit of the borrower, and may make the entire process a little more understandable to the borrower. However, it has also INCREASED the time needed to actually close a transaction. The National Association of REALTORS® has advised their members to add 15 days to all purchase transactions funded with a loan. In other words, what used to take 30 days from offer acceptance to closing will now take 45 days. What used to take 45 days will now take 60 days or TWO MONTHS!
How will this impact buyers and sellers locally? If you are a buyer and want to take possession of your home in time to plant flowers in April, you need to start searching now! If you are looking to sell your home, don’t wait until the weather breaks for you to do your spring clean-up! Those buyers (as previously mentioned) are looking now!
Not only does the time frame change on a real estate transaction, but it becomes crucial to get the help of service providers such as REALTORS®, lenders, inspectors, etc. that are aware of these changes and the time-frames required to close.
IF you are planning on making a move in 2016, whether as a buyer or seller, keep in mind the additional time it’s going to take and put that FIRST on your list for 2016!
As appearing 12-25-15 in The Canton Repository