The loan documents to homebuyers are going to be simple and easier to understand. As per Russ Whitney there are two new forms, a Loan Estimate and a Closing Disclosure.The purpose of the new forms is to simplify closing information and make it simpler for consumers to compare their estimated costs to final costs.
Russ Whitney suggest that new forms will hold lenders to three-day deadlines so that consumers will have the information they need well before closing.The three-day rule applies to both the Loan Estimate and the Closing Disclosure.
Buyers should receive the former three days after applying for a loan and the latter three days before closing. At the same time buyers should take this time to look carefully for any changes between the Loan Estimate and the Closing Disclosure.
Russ Whitney informs all that consumers will have more experience on the new forms, the interest rate, monthly payments, and the total closing costs will be clearly presented on the first page, making it easier to compare mortgage loans and choose the one that is right for them.
Some important information will also be highlighted, including the costs of taxes and insurance and how interest rates and payments may change in the future. This information will help consumers decide whether they can afford the mortgage loan and the home, now and in the future.
For More News:Russ Whitney Shows Impact on Increase in Mortgage Rates