The way that real estate transactions have occurred for years will undergo a complete overhaul effective August 1st of this year. The forms that were used will change and also will the process, no more HUD-1. New is consumers must receive the final “numbers” at least three days prior to the closing. Changes to the interest rate or to the type of loan may require another three day disclosure period.
For first time buyers or buyers who have purchased in the past few years – don’t assume that you know how the process works because it will be different now. Some advice for buyer’s and seller’s:
1. Make sure that you are ready to close 7 days prior to the closing date. Do your walk through, firm up with the bank that you are cleared to close and that there are no final documents necessary. keep in close communication with your real estate agent, if you are a buyer ask first as any changes at this point could delay the closing.
2. Sellers read your contract and abide by it, ask if you have questions. Don’t remove that refrigerator that the contract says you are leaving..delays at closing may require another 3 day window for disclosure.
3. Adding 15 days to the real estate contract closing date gives a buffer if the bank makes an interest rate change and you need another 3 day disclosure period. Banks getting their docs ready for disclosure three full days in advance is quite a change from what we are used to – with closing docs now sometimes arriving after everyone is that the closing table.
This new process will give buyers an opportunity to make corrections if the rate they were quoted is not the rate on the disclosure docs, or any other changes.
Keep in touch with your real estate agent..ask questions before you make any changes to anything. For those of you who want to read every single detail of the changes from the Consumer Finance Protection Bureau, “Know Before You Owe”