Many people have heard about at least some of the new mortgage disclosure laws that have resulted in an increase in turn times for If you are currently shopping for a house (whether it is in Fulton Ranch or a home near the Phoenix Light Rail), be aware that it is probably about to take a little longer to get your loan done no matter where you are shopping for a home in Phoenix.
Or, I should say “it might take a little longer to get your loan done than it used to… but we are still closing loans in ten days here.”
The reason that it is going to take slightly longer is because of the new Good Faith Estimate guidelines that went into effect on January 1, 2010 as well as some of the recently imposed Truth in Lending disclosures.
Why the increased length of time? Because of the number of times the consumer must be sent a disclosure when something changes — even slightly — and then an associated “waiting periodâ€.
Highlights of the new Truth-In-Lending law:
- No upfront fees can be charged to the customer, except for a credit report charge until they have received the TIL. ( No more up front fees for those lenders who still charged an up front “commitment fee†or anything like it)
- TIL must be disclosed to the buyer within 3 days of application.
- Once they receive the TIL, then there is an additional 7 day waiting period before the loan can close.
- Any changes to the loan that result in a change to the APR, you will need to get a new TIL disclosure and then there is another 7 day waiting period.
- Generally speaking, it is not uncommon for various numbers in a transaction to change slightly during the process, and so when this happens starting in August, just be ready for an increased turn time to get your loan done.
Now, it is not every loan that will take longer to get done – but on average, I think it is safe to say that the overall turn times to get a loan done are about to go up – but I think it is safe to say that we are still the fastest.
And the best.
