New Mortgage Disclosure Laws to Delay Home Purchases

Keep Your Home Buying Process Timely

New mortgage disclosure laws are in effect, and have been since October 3, 2015. They will affect those home buyers who are applying for a mortgage as new rate and fee quote forms from lenders are required.

These federally required consumer disclosures, or TILA-RESPA Integrated Disclosures (TRID), will make it easier for the home buyer to understand the rate and fee quotes from lenders. The down side is that they will slow down the home-buying process. When buying a home, you need speed on your side! Any added time can cause the seller to reject your offer and you could lose your dream home. Factor in the extra time that the new disclosure laws will take.

The first disclosure law is called the Loan Estimate. This document clearly shows your rate quote, loan term, line-item fees, and cash needed to close, which must be given to you within three days of applying for a mortgage.

The second new disclosure law is called the Closing Disclosure and allows the buyers to review the closing terms and compare them to the original terms. This provides further clarity on closing costs by showing which line item costs are paid by the buyer, seller, and third party. The lender must provide this document to you at least three days before closing, although this can take up to double this time.

To secure your home and loan, be sure to find a realtor who understands the new laws and can find your perfect home, or sell your old one! Contact Cary Amo, located in Lafayette, California, who serves all the surrounding areas with quality real estate services.

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