With the upcoming year of 2010 there are some new rules coming out through HUD (The US Department of Housing and Urban Development) supporting Buyers and Sellers with financing for the purchase of their homes and closing their transactions. With these new rules, which are given a year of transition time to take place, lenders will be required to clarify all disclosures for the Buyers. HUD is requiring that the lenders use a new standard form which will be generic for all to disclose all of loan terms and costs related to the loan in the clearest and most precise way.

Along with the loan terms and the Good Faith Estimate form, HUD is also enacting a new closing statement for all agents to compare the closing costs for transactions. This form is a clear and easy to read form itemizing the costs of the transaction for better understanding of costs related to closing for all parties involved. Again, this will be a generic form used in the US. So now when you buy property in Hawaii it will look much more like the transactions you may have had in California, Wyoming or New York.

Great to hear that our government is working toward creating a process for the everyone to understand what they are getting in to with the borrowing money and buying property. There has been so much confusion created through misunderstanding, lack of awareness and being “in the dark” about how buying and selling real estate really happens. With the “language” being the same Buyers and Seller’s may now have more resources to identify issues and costs they will incur, and why. So here is a way HUD seems to be presenting a process for all to be on the same page.

Ask your agent, your escrow officer and your lender when it comes time for buying and selling, if they are using the new HUD settlement statements and new Good Faith Estimates. Protect your investments and go in with your eyes open. You hold the reins!