New disclosure rules were put in place in the real estate market. The new law will require lenders to give home buyers two new forms that clearly detail their loan terms. The new real estate market enhancement seems a good news for consumers. However in the prospects of financial security and compilation this law seems intimidating more so to the low-income earner who would wish to purchase a home.
The rule, formally known as the TILA-RESPA reduced the once four forms to two. The two forms now stand as the Loan Estimate and Closing Disclosure. The new law, however, just made your step to having your next home easier. You will be required to provide a potential home buyers form and a Loan Estimate form within three days of a submitted application. The form includes the loan terms and the interest rates. The form will also break down estimated closing costs. You should make sure to shop around and compare the new rates and charges to be on a safer side before considering buying your next home.
The monthly payments should be keenly checked to protect you from situations you did not plan for. The latest developments in the real estate will require borrowers to have a Closing Disclosure three days prior to closing. Since the industry is used to last minute closing, the new law might take time for lenders to adjust to it. The setback comes to when inspections, contingencies, and repairs have to be done. The timing leaves no room for all that, and that is very scary. The general real estate market is speculated to lower their prices to attract new and naive consumers. This is because there has been a drop-down in sales and home ownership due to the hiked prices.