When you try to get a mortgage, you receive many disclosures. It can be confusing. Each of these was produced by different legislation over the years. In some cases, they provide overlapping information, which can make it even more complicating to digest. The 2015 new mortgage disclosure documents will make the disclosures provided to home buyers less complicated.
The Loan Estimate Disclosure
The new loan estimate disclosure combines figures from the Truth-in-Lending (TIL) and Good Faith Estimate (GFE) disclosures. This document will provide information on the features of the loan, costs involved, projected mortgage payments, and any risks that come with it. This can be useful when comparing specific mortgage alternatives either from a single lender or from different companies. Mortgage companies will provide this disclosure within 3 business days of your application for a mortgage.
The New Closing Disclosure Form
The closing disclosure form outlines the specific costs related to the mortgage. It combines numbers normally found in the HUD-1 and Truth-in-Lending disclosure. To help make sense of the different fees, they will be lumped into different categories such as origination charges, recording fees, and pre-paids. This document is generated later in the transaction,... at least 3 business days before closing.
2015 New Mortgage Disclosure Documents
These forms will be implemented August of 2015. If you fill out a mortgage application on or after August 1st, you will receive these new forms. This change does not apply to specialized programs such as equity lines of credit. Regardless of which documents apply to you, you should always contact your mortgage advisor if you are confused about anything related to your mortgage. The information on the 2015 new mortgage disclosure documents in this article is provided only as an overview and does not outline every detail of the planned revisions.
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