If you’re a first time homebuyer or seller, or even a repeat home buyer, the terminology and paperwork that goes a long with these processes might seem overwhelming. Well starting October 3, 2015 homebuyers are going to get some relief because there are new rules going into effect that will make the closing process easier for everyone. At least, that is the intent according to a quote from David Stevens, CEO of the Mortgage Bankers Association (CNNMoney.com),
“For consumers, it’s going to be viewed as an improvement in what can be a somewhat scary and intimidating process in the biggest investment of their life.”
So what is actually happening? How is the closing process becoming easier and how will it change the mortgage process? To start a number of forms are being eliminated and combined in to a single form (see the list below).
- Loan Estimate Form – A combination of two previous forms (The Good Faith Estimate and the Truth in Lending disclosures).
- This form must be sent to the buyer no more than 3 business days AFTER the application is completed.
- Closing Disclosure Form – A combination of two previous forms (the final Truth in Lending Disclosure and HUD-1 Settlement Statement)
- Form must be delivered 3 full days BEFORE the closing (changes made during this time will therefore delay the closing process)
According to nahb.org the difference these forms have from the old forms that makes it easier for consumers are that they define the most important details on a single page, such as interest rates, monthly payments and closing costs.
Hopefully if you were at all wry about the closing process or any of the terminology that is used in our real estate world, you stopped by our YouTube and Pinterest pages. In both spots we have a number of useful videos and boards that can help such as The First-Time Home Buyer Video Series or the Tip Tuesday Pinterest Board where we give tips on everything from moving with pets to home décor ideas.
With all these resources and an easier closing system, I hope you’re more ready than ever to find your dream home!
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Until Next Time,