Buyer’s Market in Bend Oregon

It’s certainly a buyer’s market in Central Oregon real estate; maybe the best in twenty years!  There is an incredible range of choices when it comes to homes in Bend.  And with all the options, has comes a beehive of activity and the necessity to move quickly when the right housing opportunity arises.  We’ve got many clients currently looking for houses in Bend, but a word to the wise . . . it’s imperative to have financing options (click here for a list of recommended local lenders) in place prior to making any sort of buying decision.

New Lending Regulations

The federal government has recently enacted a lightly publicized set of consumer protection regulations that, while being for the most part beneficial,  can radically affect transaction time lines.  These regulations went into effect on July 30, of this year, a time when most of us were out enjoying the outdoor  lifestyle we’ve come to appreciate in Central Oregon . . . fishing, paddling, hiking , golf, cycling, windsurfing. I’d rather be doing any of that stuff rather than writing this!  But, I’ll try to explain the changes in simple terms.

One of the primary Federal Reserve  changes requires lenders to provide initial disclosures of estimated mortgage costs within three days of the filing of a loan application.  To me, a clearer path through the morass of usually unintelligible numbers.

Regulations also now prohibit lenders from collecting any fees (except perhaps a small credit check charge) until the above loan cost disclosures have been made.  To most of us, this is a welcome relief . . . no more bizarre out-of-pocket application fees; at least not until we’ve received an annual percentage rate (APR) calculation and the “truth in lending” disclosure.

This will present quite a change to some lenders, especially those who traditionally collected upfront fees–sometimes amounting to a fair bit of change– covering appraisals, administration fees, and various other esoterica.

The Bottom Line

The rules will also eliminate “quickie closing” on loans by mandating a seven day waiting period after potential buyers have been presented with disclosures.  Buyers will have a bit more time to think about there options.  Final truth-in-lending disclosures will be due three days prior to closing.

For a more interesting read (hopefully, the photos served to mitigate things a bit), try this post.

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