Monday, November 23, 2015 / by Extreme Home Selling Team
Lew Sichelman, a syndicated writer on Real Estate, contributed an article recently on Real Estate Closings and the real probability of Delays... due to the Seller or Buyer, NOT the paperwork!
October 2015 saw the new TRID forms become law. TRID is TILA-RESPA Integrated Disclosure
Truth In Lending Act - Real Estate Settlement Procedures Act Integrated Disclosure.
In English: It means slightly fewer procedural hoops to jump through and fewer forms.
The New Loan Estimate - given to you when your loan application is approved - replaces the old Good Faith Estimate and initial Truth-in-Lending statement.
The New Closing Disclosure - given to you three days prior to clsoing - replaces the old HUD-1 Settlement Statement and the final Truth-In-Lending statement.
You will now know what you will pay in interest, mortgage insurance and other loan costs plus how much cash you must bring, if any, to the closing table. No changes in fees! No Surprises!
As a Borrower you should know exactly which product you want to use for this particular purchase. Utilize the Consumer Financial Protection Bureau cfpb.gov and their suite of online tools to learn about options, then discuss thoroughly with your Loan Officer. After making your selection and submitting your application, you should receive a Loan Estimate within 3 Business Days. It's very important to stick with your choice the closer you get to closing as any changes means the Lender has to start over again and that WILL push back the Closing Date!
If you honestly feel uncomfortable with the Loan Product, call your Loan Officer and discuss the reasons. Work towards a reasonable and acceptable solution. Remember that as a Buyer, you've put up Earnest Money, and spent funds for Inspections and an Appraisal which will be unrecoverable should you not proceed. Staying in touch with your Lender will keep you connected to the process and informed.
Lenders are now required to be responsible for the Closing along with the accuracy of the closing documents versus the Closing/Title Office or Escrow Agent. This increased clarity should create a smoother transaction in the end.
As the Settlement Date nears, you will receive the Closing Disclosure which you should compare to your Loan Estimate for accuracy. If there is any issue, bring it up immediately! Don't wait until Closing because it can delay three days or longer subjecting you to hassles and possible financial penalties.
It's been suggested that you don't close on a Friday as the payoff check never reaches its destination in a timely fashion, thereby incurring more accrued interest that a Seller will owe. Don't close on a Monday in case you have issues that must be resolved, so schedule it for a Tuesday, Wednesday or Thursday.
For information on Foreclosure Pathways, check out these links to some of Lew Sichelman's Columns.
Consider that every Foreclosure in a Neighborhood DOES affect the Value of each home. Read the facts here.
Whether you're Buying or Selling a Home in the near future, put the Extreme Home Selling Team to work for YOUR FAMILY!
ROBERT "CHIP" DEACON, Broker-Associate
Jeff Kaplan, Customer Care Team
Shari Shepard, Team Admin
Laura Dobrin, Realtor - Buyer's Agent