If you’re thinking about Boston Midtown real estate: Check this out….
If you’re a future Boston midtown real estate buyer, check this out.
What You Need to Know About the New Closing Disclosures
Truth-In-Lending Act (which informs consumers about loan terms) and the Real Estate Settlement Procedures Act (which deals with closings) is a set of disclosure forms for home buyers who are getting a mortgage.
The official title to these regulations is a mouthful — Truth-In-Lending Act / Real Estate Settlement Procedures Act Integrated Disclosure Rule— so the regulations are just referred to as TRID. The enforcement agency, the Consumer Financial Protection Bureau, also calls it “Know Before You Owe.”)
“Know Before You Owe” is designed to help Boston Midtown real estate borrowers clearly understand the costs and terms of their home mortgages. Here are the key points that you can should know:
You’ll Have Two Boston Midtown Real Estate Forms
If you’re getting a mortgage, you’ll receive two forms under “Know Before You Owe.” The first, a loan estimate, based on your financial information. You’ll receive the loan estimate 3 business days after applying for your mortgage. The second, a closing disclosure, which outlines all of the costs you will need to pay. You’ll receive that form 3 business days before closing on your Boston midtown real estate.
There is a 3-Day Review Period Before Closing
Under the new “Know Before You Owe” rules, mortgage lenders must send you — the Closing Disclosure form — 3 business days before closing on your Boston Midtown real estate. This is to ensure that you have enough time to read the documents before the closing.
However, some changes to the mortgage terms, will mean that you will need another 3-business-day review period, possibly delaying your closing date. If you would like an overview of the details, the CFPB highlights the instances where the 3-day review period would be affected.
If you are buying a Boston Midtown condo and have questions about these regulations, and what it might mean for closing on your Boston midtown home in the future, contact our real estate experts today and we will be happy to answer your questions in detail.