Homebuyer Tips to Help You Navigate the New Mortgage Rules

Recent changes in federal regulations has slowed the mortgage loan process but has also added valuable protection for homebuyers.

02/17/2016

Homebuyer Tips to Help You Navigate the New Mortgage Rules

The new rule called TRID (Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosures) requires new mortgage disclosure forms and changes the way real estate transactions are processed and closed. Disclosure forms have been streamlined and combined into new “Loan Estimate” and “Closing Disclosure” forms:

  • The Loan Estimate lays out the costs and any possible changes to the mortgage.
  • The Closing Disclosure shows all costs related to the closing and the exact amount of money the borrower will be required to bring to closing.
To make sure buyers have time to digest this information, lenders are now required to get the Loan Estimate to the buyer no later than three business days after the loan application is submitted. Buyers must have at least seven business days to review the paperwork between receiving the Loan Estimate and the closing. The buyer must receive the Closing Disclosure at least three days before the closing.
Current regulations have stretched the closing process timeline from 30 to 45 days in many cases. The Mortgage Bankers Association says buyers can help speed the process by taking the following steps:
  1. Be responsive to your lender. He or she will ask you for additional information and the process will go much smoother if you deliver the documentation completely and quickly.
  2. Tell your lender to move forward as soon as you finish shopping and are comfortable with your choice of loan. (Buyers are allowed ten business days to decide on a loan but do not need to wait that long.)
  3. Read the Loan Estimate and any revisions to the Loan Estimate carefully so any questions can be resolved early in the process.
  4. Avoid last minute changes to the loan to avoid delay and prevent an additional waiting period of three business days. 
  5. Work with your real estate agent and the seller’s agent to conduct home inspections, order reports, and clear any contingencies as early in the process as possible.
  6. Schedule your final walk-through well before the Closing Disclosure is issued, if possible.
  7. Tell your lender as soon as possible about any change to the transaction that you think might impact the loan or the closing.
We are dedicated to helping your navigate the new mortgage regulation, and can ensure that your home buying process runs as smoothly and as quickly as possible. Find your North Shore Bank Mortgage Loan Professional at a nearby office. They can help answer your questions and provide you with reliable and well-informed guidance.

This is not an offer of credit or commitment to lend. Loans are subject to buyer/property qualification. Rates/fees are subject to change without notice. Cash reserves may be required for some conventional loans. Please contact a Loan Originator to discuss your specific situation. Pre-approval is not guaranteed and may require additional information. Member FDIC. Equal Housing Lender.

 

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