At the end of last month, the Housing and Economic Recovery Act (HERA) was approved by Congress. This bill was put into effect to protect consumers and allow more time for borrowers to review specific mortgage details before closing. The new Federal law will dictate closing dates on ALL real estate sales nationwide in which a mortgage is obtained.

Effective on all mortgage loans originated on or after July 30, 2009, HERA will add up to six business days to closing dates. Going forward, all parties to a contract need to be aware that although a specific closing date may have been listed, it might be subject to change due to these new federal guidelines.

“HERA adds new aspects to the mortgage process, several of which could cause delays,” explains Judy Jones, Vice President of Metro Brokers Financial (MBF). “Clients need to be informed as soon as possible about these new changes, so that they will be aware and know what to expect. Remember, forewarned is forearmed.”

Jones also had the following tips for sales associates regarding the new HERA laws:

1. Allow a minimum of 45 days for closing; 60 would be better.

2. Encourage buyers to lock in their interest rates and loan programs as soon as possible in advance of the closing date.

3. Once a Binding Agreement is reached, don’t change anything unless absolutely necessary. Every change is a minimum six day delay in closing.

If you have questions regarding financing and HERA, contact a MBF loan officer at 404.847.2510.

Better Homes and Gardens Real Estate Metro Brokers has 28 metro Atlanta and north Georgia offices and offers a wide range of real estate services including residential and commercial sales; pre- and post-license training; corporate relocation; new home sales and marketing; and insurance, mortgage and title/closing services.

The company is the largest Better Homes and Gardens Real Estate franchise in the world and has more than tripled in size over the last five years with almost 2,200 licensees, making the company the largest license holder in the state of Georgia. BHGRE Metro Brokers is also the number one selling broker in metro Atlanta and north Georgia.

To contact BHGRE Metro Brokers, call 404.843.2500 or click contact us