HUD and REALTORS® Unveil Three How-To Videos To Help Consumers
Especially in today’s housing market, the prospect of buying a home can seem overwhelming
for many Americans who may not be aware of how to begin the process of shopping for a home or even a mortgage. To help consumers
navigate this process, the U.S. Department of Housing and Urban Development (HUD) and the National Association of Realtors®
(NAR) today unveiled three how-to videos to help prospective homeowners find a home they can afford, shop for a mortgage they
can sustain, and what to expect when they go to closing.
produced the three consumer education videos in coordination with NAR and released them at the Realtors® annual convention
in New Orleans. Each video focuses on a critical part of the homebuying process including Shopping for your Home,
Shopping for your Loan, and Closing the Deal.
Shopping for your Home– The homebuying process obviously starts with finding a place you’ll want to call home. This short video
will instruct viewers on assessing how much of a home you can afford, working with a real estate agent and what happens once
you find the home you want to buy. Housing counselors can assist home buyers and home owners on issues such as home buying,
fair housing, credit issues, and foreclosure prevention.
Shopping for your Loan – Once you’ve found the home of your
dreams, the next step is to shop for a mortgage loan. This video will help consumers use the good faith estimate (GFE), which
is a form that spells out the terms of a loan offer, to shop for the best loan for them. Consumers will learn how to use the
GFE to determine how long an interest rate is available for a particular loan and how to identify key loan terms and costs
of a particular loan offer. HUD suggests consumers shop and compare GFEs from multiple mortgage brokers and/or lenders in
order to get the best loan for their situation.
Closing the Deal – Finally, this video walks consumers through the actual
closing process including how to make sure the loan they were offered closely matches what they encounter at the settlement
table. In particular, HUD will walk the viewer through the HUD-1 Settlement Statement and demonstrate ways consumers can compare
their actual costs with those reflected on their Good Faith Estimate.