The pre-crash borrowers from early 2000 to 2008 made purchases with good faith numbers that included the APR, closing fees, pre-paids, and and any points associated with the loan. However, most still felt they did not fully understand the fees and loan terms. This is why you need a local and experienced loan officer in your corner.
In 2013, the government passed a set of rules called TRID – the TILA RESPA Integrated Disclosure Rule. This rule is also known as the ‘Know Before You Owe’ mortgage disclosure rule and is part of our Know Before You Owe mortgage initiative.
Today, there are many more steps in the loan process allowing borrowers to understand the deal. First you have the initial LE, or the Loan Estimate. This will go to the borrowers email. The borrower must acknowledge receipt before the lender to continue with the loan. During the loan process, any change requires the lender to send out an updated Loan Estimate. This includes loan officer fees, lender fees, and title fees.
Another protection for the borrower is the CD, or Closing Disclosure. This is sent from the lender and must be acknowledged before the lender can send documents to
title to sign. After the CD is acknowledged, there is MANDTORY 3 business day waiting period before you can sign the official documents at the title company.
We have have seen what happened before the crash and have refinanced many folks out of those terrible loans. This is why it is important to have a local knowledgeable loan officer in your corner. Call Scott Bennet at 503.703-4699 or email firstname.lastname@example.org and let’s discuss the multitude of options available to you today! We even make house calls!