Ask Gail: What is the Know Before You Owe Rule?

ARLINGTON, Texas - Sept. 12, 2015 - PRLog -- Ask Gail, the real estate expert!

Q: What is the Know Before You Owe Rule?

A: Starting on October 3, 2015, applying for a mortgage and closing on a home will become much easier for consumers. Previously, the forms needed to apply for a mortgage were extremely confusing, complicated, overlapping, and often resulted in many errors that caused major delays in closing. Congress directed the Consumer Financial Protection Bureau (CFPB) to create new forms to make things more streamlined and simplified for the buyer. To achieve this goal, the CFPB gathered consumers, lenders, mortgage brokers and settlement agents to develop forms to simplify the home-buying process. Consumers will be thrilled to learn that the result means less forms, with less chance for error. Not only are these forms easier to understand, but the consumer will now be receiving the Closing Disclosure document 3 days before closing. This also means that if any changes need to be made (by the buyer or seller) between the time of receiving the documents and closing day, there will be a three-day delay before closing can occur. More time to understand mortgage and closing terms will truly help you ‘know before you owe’. The new Know Before You Owe Rule is a win-win for all parties involved in closing on a home.

For all your real estate needs, contact DFW metroplex realtor, Gail Burdine!

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