Know Before You Owe: New Disclosure Laws

Know Before You Owe: New Disclosure Laws

While the mortgage game might be the same the rules have changed to favor homebuyers!

The new rules “Know Before You Owe” helps borrowers by providing clarity of their mortgage costs and dues. Having been in effect since October 3rd, when homebuyers apply for a mortgage, they’ll receive new disclosures designed to ease the process of taking out a loan.

The mortgage process should be more transparent to consumers to include information that helps homebuyers figure out what they can afford to buy.

  • The Loan Estimate and Closing Disclosure
    The Consumer Financial Protection Bureau (CFPB) have made it possible for homebuyers to have a better understanding of the true cost of their loan instead of having to compare multiple documents with conflicting figures. They have narrowed down the four documents into two: Loan Estimate and Closing Disclosure.
  • 3 Days
    The CFPB mortgage disclosure rules call for a three-day period to allow you to look over and become familiar with the buyers Closing Disclosure before settlement. This should confirm all the terms that you have seen throughout the process from your Loan Estimate if your rate was indeed locked with those terms.  Any lingering questions should be asked of your Mortgage Consultant/Adviser.
  • The New Normal
    While a typical closing takes around 30 days, many lenders now assume they’ll need more time to close. This process has lengthened to 45 days with the Big Banks. While this allows you to process terms, if you are in a hot market and a cash buyer who is ready to close quickly takes an interest in your chosen home, you may lose out.  Luckily, many Direct Mortgage Lenders (Like Skyline Home Loans) are still able to close purchase loans in 30 days with all parties responding quickly throughout the transaction.

Be sure to secure a quality lending company that will work alongside your needs and budget to secure you the best loan.

Contact Andraya Coulter for your home loan in the Bay Area, the entire state of California and all of Texas.


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