When Do I Get My Loan Closing Disclosure?

http://bucket.wistia.com/medias/2hdw2fv1zi?embedType=async&videoFoam=true&videoWidth=640 If an eligible loan proceeds from Estimate to closing, creditors must provide a Closing Disclosure form documenting the actual transaction terms and costs THREE business days before consummation. It must be in writing, whether paper or digital, and disclose ONLY the information specified by the CFPB. If terms or costs change prior to consummation the creditor must provide a corrected disclosure containing the updated terms. In some cases, this may require an additional 3-business-day waiting ...
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Understanding Your Loan: Closing Disclosure Page 1

http://bucket.wistia.com/medias/zsfyb0hfxy?embedType=async&videoFoam=true&videoWidth=640 The first page of your Closing Disclosure documents: The Loan Amount - the total you will actually borrow The Interest Rate - which does NOT include the fees factored into the APR on Page 5 If this loan has a penalty for pre-payment or includes a balloon payment Page 1 will summarize the terms. Projected Payments will show the chief cost components - Principal & Interest, Mortgage Insurance and estimates of your Escrow Payments over the life of the loan. You may see different col...
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Understanding Your Loan: Additional Information Can Be Important

http://bucket.wistia.com/medias/zogoegpv3h?embedType=async&videoFoam=true&videoWidth=640 Page 4 of your Closing Disclosure is important. It is NOT just standardized form information that is identical for every loan. Review these terms: Assumption: can this loan be transferred to another person if you sell or transfer the property? Demand: can the lender require early repayment of the loan? Late Payments: what penalty, after what period, applies? Negative Amortization: does this loan schedule or allow payments that do NOT fully cover the interest due, resulting in increa...
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Understanding Your Loan: Cash And Transaction Summaries

http://bucket.wistia.com/medias/48xh6i7jyi?embedType=async&videoFoam=true&videoWidth=640 Page 3 of your Closing Disclosure will compare cash requirements from your Loan Estimate to your actual final charges. If “Did this change?” is “YES” notes for changed sections should be provided. The bottom line final “Cash to Close” is the money you will need in-hand in three business days. If your transaction has a Seller the summary table will show a line by line comparison of Borrower to Seller transaction details. If there is no Seller you may see a Payoffs and Payments table i...
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Understanding Your Loan: Closing Cost Details

http://bucket.wistia.com/medias/xemdkgqmmh?embedType=async&videoFoam=true&videoWidth=640 Page 2 of your Closing Disclosure details specific closing costs. Section A includes: Origination charges collected by the lender Origination fees paid to brokers, loan officers or other parties and Discount Points - prepaid interest. These figures should match your original Loan Estimate. Section B covers services for which you could NOT shop. The total of these should be within 10% of the total from your Loan Estimate. Section C covers services you could shop. If you chose providers f...
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Your Rights And Rules For Closing Disclosures

http://bucket.wistia.com/medias/z3uut7vf24?embedType=async&videoFoam=true&videoWidth=640 The Closing Disclosure documents the actual terms of your loan transaction. You should receive it no later than 3 business days before consummation. It must be in writing - paper or digital. If the loan terms or costs change prior to consummation, your lender must provide a corrected disclosure AND an additional 3-business-day waiting period until loan consummation. Waiving the 3-day waiting period is only permitted in certain circumstances, and only when the waiting period would cause a b...
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Understanding Loan Estimate Comparisons

http://bucket.wistia.com/medias/nblh1w1oiy?embedType=async&videoFoam=true&videoWidth=640 Page 3 of your Loan Estimate includes measures to help you compare loans. “In X Years” shows the total amount you will have paid in that time, and the dollar amount applied to your loan principal. The ratio between total paid and principal reduced may change over time. The APR shows interest PLUS fees as an annual ratio - APR is the actual percentage this loan costs per year. The TIP figure relates the interest you will pay over the life of the loan to the loan amount. For example - a T...
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Calculating Your Cash To Close

http://bucket.wistia.com/medias/om42y6crqo?embedType=async&videoFoam=true&videoWidth=640 Page 2 of the Loan Estimate provides the current ESTIMATED cash to close. Some costs will stay the same between estimate and closing. Some will change. A - Origination Charges - should match. B - Can’t Shop - 10% Tolerance C - Can Shop - no tolerance limit, BUT IF you select a provider from your lender’s list their actual cost should be no more than 10% greater than the estimate. E - Recording Fees are also subject to 10% tolerance F - Prepaids, G - Initial Escrow and H - Other, such...
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Understanding Your Loan Estimate: Other Costs

http://bucket.wistia.com/medias/3pmqufig00?embedType=async&videoFoam=true&videoWidth=640 Real estate transactions require taxes, certain pre-payments, and escrow funding. Recording fees are charged by government agencies for keeping legal ownership records, while “transfer taxes” may be imposed by states, counties and municipalities on real estate ownership transfers. Prepayments may include homeowner’s insurance premiums on the property mortgage insurance, if required property taxes for a period of months in advance, and prepaid interest, typically for the period from closing...
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Understanding Your Loan Estimate: Services You CAN Shop For

http://bucket.wistia.com/medias/vpeevilki3?embedType=async&videoFoam=true&videoWidth=640 These costs are paid to outside parties and YOU are free to shop and compare providers for a variety of services. These might include pest inspection, or  a survey to verify property lines or a range of Title-related services. Title services might include: a Lender’s title policy, which protects their legal interest in their loan collateral- usually the property itself settlement agent fees, paid to the individual or company responsible for facilitating the final transaction Title Sea...
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