Yesterday I was at a meeting regarding new changes in the home buying industry. There is a lot to know for all parties involved in the process and starting October 3, 2015 (unless it is delayed again), there will be new waiting periods in the buyers paperwork for the mortgage due to the requirement to re-disclose new or updated information to the consumer.
The CFPB (Consumer Financial Protection Bureau), has initiated new waiting periods to protect the consumer/home buyer. If a loan is originated before October 3, 2015, it will fall under the current rules.
So basically why is this important? Because it can affect your closing date. This is really MY main concern for both my buyers and sellers. I will tell you that if you have all your life’s belongings in a truck and you are thinking you are driving it right over to the next house, hmmm, maybe not. This can and does happen now (on occasion for various reasons) but the risk from what I am seeing may be higher.
Ok, my point is if you are buying a home after October 3, 2015, (and you are not paying cash) you need to have good people working with you can keeping up on paper work. Buyers and sellers also need to diligently participate with the process. A buyer needs to get info and paper work to the lender as soon as possible. Do everything they tell you to do and what they tell you NOT to do. ( Don’t go buy new furniture on your credit card before you close or anything else large for that matter like a new car – it will change your debt to income ratio if you are right on the edge – just don’t do it!) You can buy the furniture or whatever after you close. Your credit and employment is checked again before closing.
So one of the things that can trigger a re-disclosure: If the fees to the buyer changes more than 1/8 of a percent at a certain point, it can trigger a re-disclosure. If this re-disclosure is with in 3 days of closing, hmmm, your are not closing on your scheduled date. This is one example of a re-disclosure scenario. Now I was also told that all banks do not do 3 days some may make it as late as 7 days. If the buyer does not have access to email then it will be the later time period.
One of the lenders that I work with is trying to make this process as smooth as possible for the buyers and everyone involved.
Attached are a few videos to explains some of the process. If you have bought a home before, then you may be familiar with terms and paper work that is mentioned already. If not you will be seeing it, if you are buying a home. Make sure you surround yourself with good, efficient, and knowledgeable people. You will be fine.
I do not necessarily endorse the companies providing information in this video. The buyer is free to choose their own lender and closing/title company. These video were made with the original deadline date of August 1, 2015 which has since been delayed to October 3, 2015 of of this blog entry.