New Disclosure Rules Could Mean Delays For Anyone Trying To Buy A House
By Lynne Adkins
PHILADELPHIA (CBS) - Starting Saturday, new disclosure forms will be in effect for anyone applying for a mortgage, impacting prospective home buyers.
You've applied for a mortgage and now comes all the all the paperwork. For 40 years, that meant four different disclosure documents, but now there will be only two, according to Holden Lewis, a mortgage analyst with Bankrate.com.
He warns there could be delays in the closing process because the forms and process are new:
"It's probably going to be a good idea to make sure that your rate lock extends a couple of weeks after your original closing date, just in case that closing date gets pushed back."
He says the new forms will clearly spell out the costs you'll incur:
"Closing costs, principal, the closing costs, interest and mortgage insurance, if that loan has mortgage insurance, plus you'll get a number of how much principal you'll pay in the first five years essentially, how much equity you'll build."
That will make it easy to compare loans, Lewis adds.
