If you are in the process of buying or selling a house right now, you may have heard something about the new " Know Before You Owe" mortgage disclosure rules. Any changes in the buying or selling process when it comes to the closing table can make even the sturdiest of men queasy. Rumors of weeks of delays have had us all in a tizzy! What do these changes mean and who will they affect can be a little overwhelming. After all who reads all those words on the contract or HUD? Here is a little break down for those of us who like to be calm at the closing table.
What can cause a delay in closing? The easy answer is three things. Which makes me personally breathe a sigh of relief! The three changes to the contact that could cause a three day delay. These three are the following: the APR increases by more than 1/8th of percent for fixed rate or 1/4 for adjustable loans, a prepayment penalty is added or the basic loan product changes (meaning goes from fixed rate to adjustable rate, etc.). That's it! Not repair amendments, not change of payment, and in most cases, not even typos at the closing table can delay the closing.
This is a big relief is that all of the before mentioned causes can all be avoided with planning and attention. Using a reputable lender that has your best interest in mind and being straightforward with your finances when you meet with them can save your loan. Having a clear view of the process of buying and what kinds of loans you actually qualify for is the other important step. Surrounding yourself with experienced and knowledgeable professionals from your real estate agent to your lender and title company can help make your home buying experience a great one. Give us a call and we can explain these changes and recommend a lender that is right for you!