POSTPONED: New Rule Slows Down Closing
What's disappearing and what's getting added to the final step in buying a Louisville, Ky. home.
by MIKE HALL Owner/Broker/Agent
Updated Aug. 4, 2015: The Consumer Financial Protection Agency is handing down a new law, now set to take effect Oct. 3, 2015, that gives buyers more time to review loan documents before coming to close. The rule - originally drafted to take effect Aug. 1, 2015, that protects consumers, will likely slow down the home buying process.
HUD-1 Form = Bye, bye
The HUD-1 form was typically given to buyers when they sat down at the closing table. Now, buyers will receive a Loan Estimate (LE) three days prior to closing. The loan estimate will include all the charges, fees and line items. This helps buyers avoid hidden fees and rates when dealing with less-than-wholesome lenders, title companies or brokers.
Bottom line: You can help quicken the process.
By communicating with your loan officer, you'll be aware of any changes. Go ahead and get bank statements, W-2s and pay stubs to your lender as early as possible.