Hi Neighbors,
New federal rules require that consumers receive initial disclosures of the estimated mortgage costs within 3 business days of a loan application. Lenders cannot collect any fees prior to the consumer receiving loan-cost disclosures. This includes fees for appraisal, credit, and other charges at the time of application. Consumers must receive the truth-in-lending disclosure and an annual percentage rate (APR) calculation of the loan costs prior to any fees being collected.
Lenders also have to provide a copy of the real estate appraisal at least 3 business days prior to closing. Current law states that consumers can request and obtain a copy of the appraisal, but according to the California Association of Realtors, many home buyers are not aware they can do this.
In addition - quickie closings of loans are prohibited by requiring a 7 day waiting period after applicants are handed their early disclosures or the disclosures are mailed. This gives the applicants a week to think about the transaction and to decide whether it is right for them. Final truth-in-lending disclosures are required 3 business days before closing.
More information can be found here.
Jeff - Neighborly Realty
http://www.EnglePropertiesOnline.com
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