New “Know Before You Owe” Mortgage Disclosure Rule

Here is a link to a great video regarding the “know before you owe” 3 day mortgage disclosure rules that went into effect Oct. 3rd.  These new rules should protect Buyers from getting last minute surprises at the closing table.  The HUD1 settlement statement will now be drawn by the lender 3 full days before the closing is to occur.  Closing will be on the 4th day.  Therefore is they were to mail it out, the lender would need to send it out a week in advance.  I wonder? Will the title company charge less because of this? Seems logical…

Anyway, this new rule does effect our Denver real estate closings in that, at least here at House Calls Realty, we are going to allow an extra 2 weeks to close just in case we need it while this new disclosure program gets implemented.

We are also extending our appraisal deadlines out an additional 7 days from our standard 14 days.  For one, Denver appraisers seem to be backed up about 2 weeks, and secondly the Buyers will have ten days to decide if the lending terms are agreeable, so you don’t want to spend for an appraisal if the terms do not fly.