Barb Szabo's Blog

Changes to the Truth in Lending Act Effective as of July 30th 2009!

A recent change to the Truth in Lending Act may mean more delays for buyers and sellers!

The initial truth in lending statement must be given to a buyer within 3 days of the loan application and at least 7 days prior to closing.

Additionally , if the APR changes by more than 1/8 of a point (.125%), a new truth in lending statement must be given to the borrower no later than 3 days prior to closing, and changes to the APR can happen quite easily. This 3 day rule applies each and every time there is a change, meaning another minimum 3 day wait until closing.

Most title companies here receive loan documents around 48 hours to 1 hour from closing! This will no longer work and may cause the filings dates to be pushed out 3-7 days.

In my neck of the woods we typically close the home and give possession on the same day. But I remember a time when it was more customary to close and give possession about 2-3 days later. Perhaps we will be going back to the latter with these new changes.

This change has the potential of causing many delays, and when you consider the preparations both buyers and sellers make to vacate or move into a home, it could turn into a nightmare.

More than ever, it will be important to work with trusted lenders and title companies to avoid major problems on the day of closing. Communication with the lender and the title company will be key. We'll need to make both buyers and sellers aware of this change so contracts can be written accordingly.

You can read more about this change here

If you would like to buy or sell a home in Brecksville Ohio or in the surrounding communities, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real EstateParma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex and is deemed reliable but not guaranteed.

 

BARB SZABO

Visit Barb's Facebook Fan Page - Become a Fan! View Barb's Profile on Linkedin! Follow Barb on Twitter Barb Szabo E-pro Realtor Cleveland Ohio Homes (RE/MAX Trinity): Real Estate Agent in Cleveland, OH

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real EstateParma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

Comment balloon 47 commentsBarb Szabo, CRS • August 03 2009 09:27AM
Changes to the Truth in Lending Act Effective as of July 30th 2009!
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A recent change to the Truth in Lending Act may mean more delays for buyers and sellers! The initial truth in lending statement must be given to a buyer within 3 days of the loan application and at least 7 days prior to closing. … more