How “The Big Short” changed it all

holiday season, I went to see the movie “The Big Short“, which chronicles the 2007 collapse of the U.S. housing market.

Since 2007, the lending industry has become much more regulated. One important regulation occurred this past October. That’s when the Consumer Financial Protection Bureau (CFPB) simplified the loan process when it condensed four different disclosure forms into two and made the lending documents easier for homebuyers to comprehend. Yes, I am referring to TRID.

However, it’s also important for homebuyers to ask their lender the right questions before they sign on the dotted line. Questions like:

  • Is my mortgage rate fixed or adjustable (meaning, will the rate change over time)?
  • What’s included in my monthly mortgage payment?
  • Are you charging me origination or discount points for my mortgage rate?
  • Do I have mortgage insurance, and if so what are the terms?

 

Photo courtesy of Eric (Flickr)

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