In a previous blog post, we shared what is necessary to qualify for a mortgage in West Virginia's Eastern Panhandle. The good news? None of that will change. The other good news? The next step, the mortgage closing, is about to get easier for homebuyers.
New mortgage closing rules recently went into effect on October 3, with a goal of simplifying the process of understanding your home loan. Two new mortgage disclosures will replace the previous four that were issued and include much more streamlined information to help buyers feel more comfortable with the documents they are signing.
So what does this all mean for you as a homebuyer in Martinsburg, Charles Town, Harpers Ferry, Ranson, Inwood, Shepherdstown, Hedgesville and Falling Waters? Here are the updated mortgage closing rules outlined in the new "Know Before You Owe" initiative:
- Loan Estimate
The loan estimate is included in one of the two sets of disclosures in the TRID or TILA-RESPA Integrated Disclosure Rule, totaling eight pages in all. Once your loan is approved, the estimate will outline the exact terms, with clear answers to homebuyer questions like "Is there a pre-payment penalty?" or "Will the amount increase after closing?" The loan estimate will also list your projected monthly mortgage payment, including taxes, insurance and other assesments, estimated closing costs you will owe and how much to bring with you at the time of closing, as well as the services you can shop around for like the appraisal.
- Closing Disclosure
This document replaced two previous statements and will now be available three days before your scheduled closing. This disclosure provides information from your loan estimate—like how much you will pay at closing—in its final form. At this time, you will want to examine it closely to look for any changes.
While these changes are expected to lengthen the closing process, from the typical 30 days to around 45 days, homebuyers in Jefferson and Berkeley County are less likely to experience last-minute drama or worry in signing stacks of paperwork with terminology they may not be familiar with. At the same time, remember that it is wise to stay in contact with your lender to help your closing move along as smoothly as possible and avoid any roadblocks that may arise.
As always, feel free to reach out to Kable Team Realty with any questions about the homebuying process! We are here to help!
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