What Twin Cities Home Buyers Need to Know About the New Mortgage Disclosure Rules
Closing on your new home is an exciting period of time; however it can also be a stressful one. In an effort to make loan terms clearer, the Consumer Financial Protection Bureau has put into place new disclosure rules.
The new "Know Before You Owe” rules took effect October 3rd of this month and now require all mortgage lenders to provide borrowers with a better and more clear layout of details regarding their loan and how much it will cost them as an initial estimate, and provide an updated estimate as closing draws nears and also a final summary. As a Twin Cities home buyer you will have three business days to review the terms of the loan and any fees before you close on the transaction.
What does this mean to you as a buyer? It means it will now be easier for you to compare multiple loan offers, and when it comes to closing time you should be able to clearly see that you are indeed getting the loan you were promised.
As a result of these new rules it does open the door to potential delays if as a borrower your credit score were to substantially change as the closing date draws near.Mortgage lenders would then have to start the loan disclosure process all over.
Gone are the "Truth In Lending” and "Good Faith Disclosure” documents you once received as a borrower, and now you will be receiving a "Loan Estimate” and "Closing Disclosure” documents. You should receive the Closing Disclosure three days prior to closing, and it should include all closing costs, clearly lay out your monthly payment amount, and other important details. No more being hit with a surprise when it comes time to close.
If you are looking to buy a home in the Twin Cities we would love to help.. Our group specializes in Eden Prairie Real Estate,Chanhassen Real Estate,Chaska Real Estate,Lake Minnetonka Real Estate,Edina Real Estateand West Bloomington Real Estate.
Brace Helgeson Coldwell Banker Burnet
Licensed in Minnesota/Lic # 92065