Real Estate Transaction Closing Rules and Forms Change on August 1, 2015

Major Changes coming up to the Real Estate, Title  and Mortgage Lending, how will it effect you?

Real Estate Transaction Closing Rules and Forms Change on August 1, 2015

here is what to expect:

• The new Loan Estimate form replaces the Good Faith Estimate

• The new Closing Disclosure form – Replaces the HUD-1* – Replaces the Truth in Lending Act (TILA) disclosure

• Settlement Agents and Lenders will need to work closer together to prepare Closing Documents.

• New tolerance levels for certain fees quoted at application.

• Closing Documents will need to be delivered at least three days before closing

want to know more? call your Loans 4U teal at The Mortgage Firm. 954-800-0330.
Here is a lengthy article from the Washington Post
http://www.washingtonpost.com/realestate/closing-time-is-about-to-get-a-little-bit-easier-for-new-buyers/2015/05/13/eaa67038-f049-11e4-8abc-d6aa3bad79dd_story.html

“The goal of the CFPB is to make it easier for consumers to understand their loan terms,” says Mitchel Kider, chairman and managing partner at Weiner Brodsky Kider PC in the District. “I think the result will be helpful to consumers but there will be a learning curve for everyone.”

Here are 6 steps to ensure a smooth closing:

1. Get Pre-Qualified before making the offer. Getting pre-qualified for a loan will help you determine how much home you can afford.  What will be price range and payment for your new home. Buyers who have been pre-approved by a lender are generally those who are able to finalize their loan application faster and more efficiently than ones who have not been pre-qualified.
2. Prepare your documents. How to Buy a Home?
   you will need Income, Assets and Credit documents to get accurate figures of what you will qualify for.
3. The 2-2-2-2A. 2 years W2’sB. 2 years 1040 Tax returns ALL PAGES and schedules  Self-employed include 2 years 1120 Business Return with ALL SCHEDULESC. 2 pay stubs, most recent onesD. 2 months’ statements for Liquid Assets: ALL PAGES. Checking, Savings, Stocks, Bonds, Annuities, IRA’s, 401K, etc
4. Work with an experienced mortgage lender.
   the best way is to get a referral to a Florida Mortgage Lender. working directly with a bank may not be your best option. Ask what would be the average time for processing a loan application and, specifically, how quickly they will be able to complete your mortgage. Keep in mind setbacks may happen during the process, like any credit or employment-related problems you know exist and ask what you need to do to clear those up.
   The Loan Process-What to Expect (click on the image to open)
5. Create a timeline for any repairs the seller is obligated to make. Make sure any repairs the seller has agreed to make are completed on time — ideally, at least several days before your scheduled closing. Do the final walk-through inspection the day before closing, or sooner, if the seller agrees.
6. Confirm that you have the funds for Down Payment, closing costs, and Prepaid Items (Insurance and RE Tax escrows)
   The lender will require the proof of funds for closing in your account, or if you are getting a gift -the donor’s account. Be prepared to wire the funds on the day before closing.

Remember when it comes time to run the #’s Call or Email Racheli Refael Mortgage Lender
she will guide you on how to get a mortgage, and get you ready. 954-800-0330 racheli at Loans-4-u.com