The mortgage process recently changed with the TILA-RESPA Integrated Disclosure Rule, and it could be a marked improvement over the old process, making it simpler for some of your clients to navigate the home buying process.
WHAT IS THE TILA-RESPA INTEGRATED DISCLOSURE RULE?
The TILA-RESPA Integrated Disclosure Rule reduces four forms from two different government agencies to two simpler forms from one: the Loan Estimate and Closing Disclosure.
Under the new rule, lenders have to provide potential homebuyers with a Loan Estimate form within three days of submitting an application. The form details all of the terms of the potential loan, including the amount, the interest rate, and whether the numbers on the document can change after closing.
This can help your clients because it makes it easier for them to compare loans from different lenders.
Lenders must also provide a Closing Disclosure form three days before close so the buyer can ensure that the loan terms haven’t changed since receiving the Loan Estimate form. This form includes the exact loan amount, the interest rate, and the monthly principal and interest. It also shows whether there is a prepayment penalty and whether a balloon payment is possible. Finally, it details the exact amount of cash your buyers need to close.
Anything that simplifies the home buying process has the potential to help your clients. While it will take a little adjustment, this can make
Anything that simplifies the home buying process has the potential to help your clients. While it will take a little adjustment, this can make the journey a little less painful for everyone involved – particularly if you’re able to explain the forms to your clients.