New laws to protect the consumer and aid in shopping for your next home loan are coming! The new TILA-RESPA integrated disclosures are to go into effect for loans originating on or after 10/3.
The idea was to help consumers to be able to compare different lenders. This is a great idea and could really help the consumer....but I just don't feel like they really put it into play in a way that will actually help the consumer. But - they tried to help and there are some good things that come out of this new process. Here is a website that will be helpful to you, as a consumer, to begin shopping for your loan - http://www.consumerfinance.gov/know-before-you-owe
The goals of the Consumer Financial Protection Bureau (CFPB) were:
1. Easier to understand forms.
2. Encourage comparison shopping.
3. Prevent surprises at closing.
So now there are new forms that your lender will have and while you as a buyer may not see this change, more of the closing forms are being prepared by your lender instead of having the lender provide the info to your title company (this applies to AZ and states that use title companies).
There have always been reasons that your Realtor, lender and title company needed to work together and now these rules will reinforce this. There are now critical dates on the timelines that will have to be met so that the day of closing is not chaos! They wanted the buyer to have time to review the closing documents and have time to ask questions before the moving van is packed and waiting! So as the buyer - you need to be very aware of the critical timing issues and be sure and respond promptly to the professionals that you are working with.
At least for the next couple of months, many lenders are asking for a 45 day close so that they can test out their new procedues and give us all time to work through the new rules. So as a buyer or seller you need to be aware of that timing change and accept it.
I have always encouraged buyers to do their lender research BEFORE even looking for a home. Talk to different lenders, understand your credit score and report, fix any errors on your credit report and understand what programs are available to you. That is still the best time to shop for a loan - before you fall in love with a home and get caught up in the process that can sometimes move along quickly and carry you all the way to close in a wave of paperwork.
So be ready! TILA-RESPA is coming and you can make your life easier by making sure the professionals you choose to work with are up to date and ready to go!
Comments(2)