Three business days prior to closing on the downtown San Diego loft or condo you bought, lenders are required to provide your Closing Disclosure. This spells out final details about the mortgage loan including the loan terms, projected monthly payments, how much you will pay in fees, as well as other costs to obtain your mortgage such as closing costs. The general contents of the disclosure can be broken down into five categories including:
1. Information, loan terms, and projected payment costs at closing
2. Closing cost details including loan costs and other costs
3. Cash needed to close and a summary of the transaction
4. Additional information about the loan
5. Loan calculations, disclosure information, and contact information
Borrowers who applied for a mortgage after October 3, 2015, will receive this form in order to make home loans easier to understand before finalizing the deal. The three-day deadline also gives buyers plenty of time to compare the final terms they’re accepting. By matching information on this form to that on the loan estimate, consumers can quickly tell if anything has changed.
This also enables borrows to demand an explanation, negotiate a better deal, or cancel the loan before walking into a stressful settlement meeting. Key questions that this form answers includes how much is being borrowed, the interest rate on the loan, whether the rate is fixed or adjustable, monthly payment amounts broken down into principal and interest, insurance, and estimated escrow, what the mortgage will cost in the long haul, if points are being charged, and the amount of money needed to bring to loan closing.
By using this form as a way to check and balance, you can ensure that lenders are not imposing higher fees unless there is a legitimate reason. There are restrictions on how much the closing costs included on this disclosure can deviate from the estimate. Reach out to your loan officer or real estate broker in downtown San Diego to ask questions and clear up any concerns.
Make sure you’re getting the best deal by working with a professional and experienced real estate agent who can walk you through each step of the buying process. To learn more, give us a call at (619) 649-0368 and speak with one of our agents today! ')}