Charlotte NC Home Buyers--How the 2009 Mortgage Disclosure Act Affects Your New Mortgage Loan

The next time you get a new mortgage loan, you may notice some changes in documentation and procedures due to the Mortgage Disclosure Act that took effect on July 30, 2009.  The purpose of this new law is to protect you, the Charlotte NC home buyer, from deceptive lending practices and to ensure that you are a well-informed consumer.  It improves the timeliness and effectiveness of loan disclosures given to you, provides a waiting period for you to make an informed decision about your loan, and increases lender accountability.

What may be new to you...

• Loan disclosures must be given to you before appraisal fees are collected.
• Your loan cannot close before a waiting period of at least 7 days after the initial loan disclosure.
• If the APR (annual percentage rate) on the initial Truth-in-Lending disclosure increases beyond a certain amount, a new Truth-in-Lending disclosure must be issued.
• If a new Truth-in-Lending disclosure must be issued, there is a three day waiting period before the loan can close.

What could trigger a new Truth-in-Lending disclosure for a Charlotte NC home buyer?

• an unlocked rate
• a change in loan amount
• a rate re-lock
• a change in closing fees
• a change in closing date

Tips for a Smooth Loan Approval and Closing

1. Identify your final loan product and loan amount at application and make changes only if necessary.
2. Lock in your interest rate and points early in the process.
3. Provide all documentation requested as quickly as possible.
4. Respond quickly to any emailed disclosures.
5. Allow for a reasonable closing time, typically at least 30 to 45 days.
6. Work with your real estate agent to choose a closing attorney and closing date at the beginning of the process.

Copyright 2009.  Carol Fox.  Allen Tate Real Estate.  *Charlotte NC Home Buyers--How the 2009 Mortgage Disclosure Act Affects Your New Mortgage Loan*