New Disclsure rules in January

With the new rules enacted by our government - when you apply for a mortgage - there are many firm rules in place that will affect your closing date. The GFE, or Good Faith Estimate is a document that lists all your closing costs for the new mortgage. Some items are subject to change - for example, when you close a loan you do not have a mortgage payment for 1 month after the close. You will pay partial interest due on the loan at the close of the new loan - up to 15 days of interest, this will depend on the day of the month you close the loan - thus the amount may increase or decrease. If your initial Good Faith Estimate changes by more than $500.00 (in some cases) you will then be issued a new Good Faith Estimate, and your loan cannot close for 6 more days. If you are purchasing a home - this could cause some real problems. The best advice is - know when you want to close, have your Attorney or title company contact information at application, decide what program, rate and points you want to pay - this will help to make sure your charges are correct from the start.