Lexington Ky Mortgage Loan Changes

Several important new consumer friendly Federal Reserve regulations become effective July 30, 2009, all positive for borrowers. Here are just a few:

1. Lenders will be required to deliver a copy of the real estate appraisal to you, the borrower, three business days before the scheduled close of the loan. With appraisals more often a sticking point these days, this will be a good thing for Realtors as well as it will provide a better opportunity to work the problem if one exists between the sale price and the appraisal.

2. Lenders will be required to provide you with initial disclosures of your estimated mortgage costs within three business days of your loan application. And more importantly, lenders will not be allowed to collect any fees....except a reasonable charge for checking your credit....until you've been given the loan cost disclosures and an annual percentage rate (APR) calculation of the loan costs.

3. The rules also prohibit "quickie" closings on loans by requiring a seven day waiting period from receipt of the disclosures, effectively providing the home buyer with a week to make sure it's something he/she really wants to do.

The purpose of the new rules is to provide the home buyer with more time to evaluate the important aspects of the home buying transaction and to provide better information on which to base that decision. In that sense, the new rules have to be a good thing for all the parties involved. For more information, please visit my website!

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