There is one part of a real estate transaction that is no one’s favorite, whether you’re the buyer, seller or agent. All that paperwork. But it’s important that everyone is literally on the same page when it comes to signing on the line since this is often the single biggest financial transaction of your life. Realty Executives Northern Arizona is here to take the stress out of it. That’s why we’re happy that the Consumer Financial Protection Bureau has just developed new mortgage disclosure forms to make loan signings run smoother. The new standardized forms have been redesigned to simplify key information.
It may sound like gobbledygook, but the new Loan Estimate form replaces the current Good Faith Estimate of Settlement Costs and initial Truth in Lending Disclosure. The new Closing Disclosure replaces the current HUD-1 Settlement Statement and final Truth in Lending Statement.
What does this mean to you? Lenders will now be required to provide borrowers with their Loan Estimate three business days after the loan application date, and the Closing Disclosure three business days before the closing. This is designed to give borrowers more time to review and understand their loan terms. Less rush means less stress.
The CFPB developed the forms to comply with a federal requirement to make mortgage disclosure documents easier to understand. The new forms also include contact information for the lender, mortgage broker, real estate brokers and closing agent, which can help a Signing Agent or borrower contact someone about a loan document issue during a signing. Fewer headaches means more time to enjoy your new home. And isn’t that what life is all about? QCBN
By Don Bonnell.
Realty Executives Northern Arizona has nine separate offices represented by over 130 real estate professionals. Trust them to help you take the pain out of paperwork to get you the home of your dreams. Check the current listings at www.realtyexecutivesaz.com.
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