In October of 2015, the Consumer Financial Protection Bureau or CFPB, changed the way that lenders have to disclose rates and terms to home buyers for the loans that they are applying for. The new “Loan Disclosure”, that replaced the Good Faith Estimate (GFE), must be disclosed to applicants within 3 days of applying for the loan. This provides you an in-depth look at the mortgage you’re applying for: It details not only the mechanics of the loan — interest rate, annual percentage rate, monthly principal-and-interest payments, property taxes, insurance and other escrow items — but also the itemized charges you’ll be hit with and the amount of cash you’ll need to close the transaction. Better yet, you can pretty much depend on the cost disclosures as the final ones you’ll pay, because lenders face massive financial penalties if they play games and charge you more at closing. Under the previous system of disclosures, you couldn’t be certain about your final expenses, and the Good Faith Estimate didn’t even tell you how much you’d need for closing.
Make sure your mortgage lenders are providing you with this info in a timely fashion so that you are prepared when you find the ONE!