What has changed regarding home mortgages?
Well, the Dodd-Frank Act requires your lenders to do certain matters, as of October 3. How that affects you is going to be a delay in how they process your loan.
The lenders now must provide you with a disclosure statement three days before the closing which outlines all of your costs. Prior to this time you may get your disclosure statements or your bank charges at the closing or on your closing statement. That has now changed, and the lender has to send that to you three days prior to the closing. Be sure that you receive it by then. That is going to outline all of your closing documents and probably somewhat overwhelm you with all their documentation. Three days later, the loan can close.
This disclosure statement cannot be disclosed to anyone other than you, the borrower, and the closing agent – of course – has to have it. There will be another, supplemental closing statement which is the figures that you will use to close the transaction between you and the seller. This will basically put down the tax pro-rations, some charges that are not related to the lender’s fees. Since this was only applicable to mortgages that were applied to as of October 3, the process really hasn’t been gone through or refined, and we don’t have a lot of experience with it. So, you can expect maybe some hiccoughs along the way as far as a closing for a loan that you applied for after October 3.
Also, the Dodd-Frank bill changed the way that you could borrow money if you are buying a home from a third-party investor, or even a relative. Dodd-Frank does not allow for third parties to lend you money for your home unless they comply with all the guidelines that are in place for your large institutional lender, such as 30 year mortgages fixed-rate loans. That has impacted people wanting to borrow money from their relatives.
If you are needing some help as far as borrowing money, I am not going to lend it to you, but I can send you in the right direction as to who you can borrow it from. If you have some problems as far as wanting a relative to lend you money, give me a call at 727-847-2288 and I will be glad to try and help you. Thank you.