Today, July 31st, there was an important change to federal mortgage regulations that may affect your closing date when you buy real estate. The Mortgage Disclosure Improvement Act (MDIA) amendments to the Turth in Lending Act (TIL) –also known as Regulation Z — that will allow you , the buyer, to have plenty of time to review all specific information related to your loan.
You will now have a required seven-business-day waiting period between the time you get your initial loan disclosures and the time when you sign closing documents.
You cannot be charged up-front loan fees until you have received the initial disclosures.
If during the time of your escrow, your interest rates change more than .125%, then you must be sent a new Truth in Lending statement which you must received no fewer than three business days before your closing.
As a buyer of homes in Cardiff, Encinitas, Carlsbad, or Oceanside, you must realize that these new lending regulations have been established to protect you from changing rates and fees during the time of your escrow. Also, please remember that your escrow closing date may be extended if your fees and disclosures change.
Now is a great time to buy real estate in Cardiff, Encinitas, Carlsbad, or Oceanside. Just know and understand the new lending regulations and you will be well protected.