New Closing Rules take Effect
The Consumer Financial Protection Bureau (CFPB) has implemented new rules related to real estate closings where there is a mortgage involved. The most pertinent changes affect the timing of the loan process and required disclosures, and the subsequent closing.
What to know if you are a Buyer:
If you are buying real estate with a mortgage, it will take longer to close the deal. The contracts have been changed to allow up to 45 days for a loan commitment. It will be imperative to get your lender all the required documentation very quickly so there will not be delays. It is crucial that you are working with a lender who is well versed in all of the intricacies of the new laws.
What to know if you are a Seller:
If cash was king before, it is now emperor. If your buyer has a mortgage, your sale may be subject to delays because of the required notifications and waiting periods involved. You will not be able to schedule simultaneous "back to back" closings on the purchase of your next residence.
Both buyers and sellers -- It is more important than ever that you have an experienced, knowledgeable REALTOR® by your side. We will help you navigate these increasingly complex transactions.
