IMPORTANT - Could Affect How Quickly You Can Close Your Loan:
Effective October 3, 2015, all mortgage lenders will be implementing new truth in lending disclosure requirements mandated by the Consumer Financial Protection Bureau. These changes are aimed at making it easier for home buyers to understand the mortgage options being presented to them by an individual lender and to be able to compare mortgage options from several lenders. These disclosure changes will affect both:
- the beginning of the home buying process by replacing the current Truth In Lending Act (TILA) disclosures as well as
- the closing of the home purchase by replacing the current Real Estate Settlement Procedure Act (RESPA) disclosures, the so called HUD-1 statement, with
- a new combined Truth In Lending Real Estate Settlement Procedure Act Integrated Disclosure (TRID.)
How's that for a mouthful!
This step-by-step guide explains the process of shopping for a home loan and introduces the new forms that we'll be using starting in October.
Anytime there is a change in regulations, the first couple of months after implementation, we run into hiccups. The new regulations have several built-in deadlines and waiting periods that can not be waived. Additionally:
- the responsibility for creating the final closing statement has shifted from the Title Company to your Mortgage Lender, and
- the final closing statement must be received by the home buyer at least 3 business days before closing.
What this could mean to you is that the time frame from signing a purchase agreement with the seller to closing on the loan and getting the keys to the house may stretch out from 30 days to 45 days.
How can you keep this from happening?
Good teamwork and communication between you the home buyer, your REALTOR, and your lender. The team you choose to work with will make all the difference.