The days of changing the sales price, loan terms, certain borrower fees, or even your mortgage company shortly before or at the closing of a home purchase are history after July 30th!
The Federal Reserve is implementing major rule changes to the Truth-in-Lending disclosure. These new rules add time restrictions that will hold up a closing if there are any financial changes (amount of the loan, closing costs, rates) that cause the Annual Percentage Rate (APR) or the finance charge to change! In addition, if a borrower is having difficulties closing with a particular lender and wants to switch to another mortgage company, the ability to transfer a loan from a lender one day and close with another lender the next day is gone. Contracts for homes closing in a week's time cannot be written. These new rules apply to any financed home purchase (including refinancing and home equity loans.) They do not apply to non-occupied properties.
What does this mean to YOU? Be sure your lock is adequately long, and (most important!) that you choose a lender who is very experienced and detail-oriented. Need help finding such a lender? Your Realtors, Mike and Jean, are here to help you!! (Above information provided by Allan Atkinson, Vice President, Cornerstone Mortgage Company)
No comments:
Post a Comment