How new government regulations can impact your closing
The homebuyer must be provided with a copy of their appraisal at least three business days prior to closing. This can add time to the overall process unless the appraiser sends a copy of the appraisal simultaneously to the homebuyer and lender. The homebuyer may, if they feel the three business-day review period is unnecessary, waive this requirement. The homebuyer must receive a revised Truth in Lending (TIL) disclosure at least three business days before closing, providing the homebuyer with the time required to decide if they are comfortable with their loan choice. If mailed, the TIL disclosure is considered received three business days after mailing. An increase of more than 0.125% in the Annual Percentage Rate (APR) from the initial TIL requires the disclosure be revised and reissued to the homebuyer. Considering that many things occur and may be changed or finalized throughout the course of the transaction, there are a number of things that can impact the homebuyer’s APR. Therefore, it is critical to ensure that estimated fees are as accurate as possible. Potential impacts to the APR The following events can affect the APR and predicate the sending of a new TIL: Unlocked rate Change in loan amount Product change Rate re-lock due to market improvement Change in closing date Changes to fees, inclusive of settlement agent fees The new mortgage process and timeline Perhaps the easiest way to understand the new process and timing required by these regulations for a primary residence or second-home purchase transaction is with a day-by-day timeline. Since most transactions close in a 30-60-day time frame, the calendar at the right illustrates a desired 30-day close. It is wise to plan for at least a 30- dayclose.
Aegis Land Title Group
www.agltg.com
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