Pixel Tracker

Monday, February 18 , 2019, 9:38 pm | Fair 50º

 
 
 

Elaine Abercrombie: No More Surprises for Homebuyers

The Mortgage Disclosure Improvement Act requires that loan costs and fee changes are known well in advance of closing

Elaine Abercrombie
Elaine Abercrombie (Roe Anne White photo)

It used to be too common a story: You’re excited about signing the paperwork, shaking hands and grabbing the keys to your new home. But the day before closing, the lender advises that your closing fees are several hundred dollars more than their Good Faith Estimate listed. Suddenly, your excitement turns to pressure to just pay it and close the deal.

Those days are over, thanks to the Mortgage Disclosure Improvement Act.

What was once the Truth in Lending Act has been rewritten with new rules to help consumers understand the loan costs and alert borrowers to changes in fees well in advance of closing.

Now the lender must provide a Good Faith Estimate within three days of receiving the borrowers’ application, and closing can’t occur until the buyer has seven days to review the disclosure.

If the final APR (annual percentage rate) differs more than 0.125 percent from the original quote, a new disclosure must be provided, granting the borrower the right of rescission.

This relieves the pressure that buyers once felt to agree to pay higher fees and rates at the very last minute.

As always, borrowers can review the final documents one day before closing, providing an excellent opportunity to review all of the figures with your Realtor and to ask any lingering questions before you make it official.

Elaine Abercrombie, a broker with Abercrombie Fine Homes, is president of the Santa Barbara Association of Realtors. She can be contacted at .(JavaScript must be enabled to view this email address).

Talk to Us!

Please take Noozhawk's audience survey to help us understand what you expect — and want — from us. It'll take you just a few minutes. Thank you!

Get Started >

Support Noozhawk Today

You are an important ally in our mission to deliver clear, objective, high-quality professional news reporting for Santa Barbara, Goleta and the rest of Santa Barbara County. Join the Hawks Club today to help keep Noozhawk soaring.

We offer four membership levels: $5 a month, $10 a month, $25 a month or $1 a week. Payments can be made using a credit card, Apple Pay or Google Pay, or click here for information on recurring credit-card payments and a mailing address for checks.

Thank you for your vital support.

Become a Noozhawk Supporter

First name
Last name
Email
Select your monthly membership
Or choose an annual membership
×

Payment Information

Membership Subscription

You are enrolling in . Thank you for joining the Hawks Club.

Payment Method

Pay by Credit Card:

Mastercard, Visa, American Express, Discover
One click only, please!

Pay with Apple Pay or Google Pay:

Noozhawk partners with Stripe to provide secure invoicing and payments processing.
You may cancel your membership at any time by sending an email to .(JavaScript must be enabled to view this email address).

  • Ask
  • Vote
  • Investigate
  • Answer

Noozhawk Asks: What’s Your Question?

Welcome to Noozhawk Asks, a new feature in which you ask the questions, you help decide what Noozhawk investigates, and you work with us to find the answers.

Here’s how it works: You share your questions with us in the nearby box. In some cases, we may work with you to find the answers. In others, we may ask you to vote on your top choices to help us narrow the scope. And we’ll be regularly asking you for your feedback on a specific issue or topic.

We also expect to work together with the reader who asked the winning questions to find the answer together. Noozhawk’s objective is to come at questions from a place of curiosity and openness, and we believe a transparent collaboration is the key to achieve it.

The results of our investigation will be published here in this Noozhawk Asks section. Once or twice a month, we plan to do a review of what was asked and answered.

Thanks for asking!

Click Here to Get Started >

Reader Comments

Noozhawk is no longer accepting reader comments on our articles. Click here for the announcement. Readers are instead invited to submit letters to the editor by emailing them to [email protected]. Please provide your full name and community, as well as contact information for verification purposes only.