New Rules for Mortgages

The banks, the government, and realtors: they have all seen their share of blame for the collapse of the housing market. Yet Dale Robyn Siegel, author of The New Rules for Mortgages, is convinced homebuyers must also acknowledge their share of the responsibility to avoid a repeat of their mistakes for future buyers. Certainly there are those who have found themselves in extenuating circumstances. However, Siegel explains the reality is buyers walk into this significant investment with hardly the preparation they need.

“If you put me in front of congress to report how to mitigate a future housing crisis, I would say there is one solution,” Siegel claims. “That’s education.  There is now mandatory education for mortgage loan officers, which is great. However, every home owner must also be educated about the process, benefits and risks of owning a home.”

With lures of tax credits and “fire sale prices,” many are taking the bait to make the same significant investment 2.8 million people were foreclosed on in 2009. “One positive short term affect of the global financial chaos we are experiencing today is lower interest rates,” Siegel points out. However, the dazzle does not change the fact that buying a home is a major long term financial commitment requiring preparation. For the financial health and sanity of homebuyers, as well as that of the nation, Siegel stresses mandatory education, diligence and patience.
Here are steps she advises become standard procedure for all potential or current homeowners:

•Learn the business behind buying a home – Attend a real estate course or seminar to understand the process of buying and financing a home •Understand the fine print- Know what every signature line represents including associated fees, penalties, and deadlines •Know the costs- Beyond the price of the home, consider monthly expenses and taxes that will increase over the years. Compare these increases to future changes in income.
•Note responsibility of others- From agents to inspectors, know what is needed and can be expected from every person involved •Be patient- Allow time to make informed decisions and do research, respect the processes in place and don’t just jump in •Ask the hard questions- Address hypothetical scenarios, such as job loss, and questions that will challenge the ability and desire to make such a substantial commitment

With a little education, homebuyers can alleviate some of the risks and can confidently and intelligently proceed. A knowledgeable consumer base will also help keep the nation from simply setting up for another collapse in coming years. Ms. Siegel’s book, The New Rules for Mortgages, has been recognized with multiple awards, including one from the National Association of Real Estate Editors.

To speak with Dale Robyn Siegel or for a review copy of The New Rules for Mortgages, please contact Abby Dittmer, 708-434-5006, Abby@Wilkspr.com

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