If an eligible loan proceeds from Estimate to closing, creditors must provide a Closing Disclosure form documenting the actual transaction terms and costs THREE business days before consummation. It must be in writing, whether paper or digital, and disclose ONLY the information specified by the CFPB.

If terms or costs change prior to consummation the creditor must provide a corrected disclosure containing the updated terms. In some cases, this may require an additional 3-business-day waiting period to consummation.

Consummation and Closing are legally distinct although they may occur at the same time depending on applicable State laws. Consummation occurs when you become contractually obligated to the CREDITOR on the loan not, for example, the real estate seller. The Disclosure must be delivered three business days prior to the legal Consummation date.

The post When Do I Get My Loan Closing Disclosure? appeared first on Metairie, Madisonville, Chalmette, LA | Authentic Title & Law Practice.

The first page of your Closing Disclosure documents:

• The Loan Amount – the total you will actually borrow
• The Interest Rate – which does NOT include the fees factored into the APR on Page 5

If this loan has a penalty for pre-payment or includes a balloon payment Page 1 will summarize the terms.

Projected Payments will show the chief cost components – Principal & Interest, Mortgage Insurance and estimates of your Escrow Payments over the life of the loan. You may see different columns for different periods if changes in terms such as mortgage insurance change payment totals.

Closing Costs summarizes your loan closing expenses, and Cash To Close adds the additional amounts due to give you the cash balance you will need in 3 business days.

The post Understanding Your Loan: Closing Disclosure Page 1 appeared first on Metairie, Madisonville, Chalmette, LA | Authentic Title & Law Practice.

Page 4 of your Closing Disclosure is important. It is NOT just standardized form information that is identical for every loan.

Review these terms:

• Assumption: can this loan be transferred to another person if you sell or transfer the property?
• Demand: can the lender require early repayment of the loan?
• Late Payments: what penalty, after what period, applies?
• Negative Amortization: does this loan schedule or allow payments that do NOT fully cover the interest due, resulting in increased loan principal?
• Partial Payments: what is THIS lender’s policy?

You should also review Escrow Account details to understand whether you will pay additional property costs via regular Escrow Account payments or handle them yourself directly.

The post Understanding Your Loan: Additional Information Can Be Important appeared first on Metairie, Madisonville, Chalmette, LA | Authentic Title & Law Practice.

Page 4 of your Closing Disclosure is important. It is NOT just standardized form information that is identical for every loan.
Review these terms:

• Assumption: can this loan be transferred to another person if you sell or transfer the property?
• Demand: can the lender require early repayment of the loan?
• Late Payments: what penalty, after what period, applies?
• Negative Amortization: does this loan schedule or allow payments that do NOT fully cover the interest due, resulting in increased loan principal?
• Partial Payments: what is THIS lender’s policy?

You should also review Escrow Account details to understand whether you will pay additional property costs via regular Escrow Account payments or handle them yourself directly.

The post Understanding Your Loan: Additional Information Can Be Important appeared first on Metairie, Madisonville, Chalmette, LA | Authentic Title & Law Practice.

The first page of your Closing Disclosure documents:

• The Loan Amount – the total you will actually borrow
• The Interest Rate – which does NOT include the fees factored into the APR on Page 5

If this loan has a penalty for pre-payment or includes a balloon payment Page 1 will summarize the terms.
Projected Payments will show the chief cost components – Principal & Interest, Mortgage Insurance and estimates of your Escrow Payments over the life of the loan. You may see different columns for different periods if changes in terms such as mortgage insurance change payment totals.
Closing Costs summarizes your loan closing expenses, and Cash To Close adds the additional amounts due to give you the cash balance you will need in 3 business days.

The post Understanding Your Loan: Closing Disclosure Page 1 appeared first on Metairie, Madisonville, Chalmette, LA | Authentic Title & Law Practice.

If an eligible loan proceeds from Estimate to closing, creditors must provide a Closing Disclosure form documenting the actual transaction terms and costs THREE business days before consummation. It must be in writing, whether paper or digital, and disclose ONLY the information specified by the CFPB.
If terms or costs change prior to consummation the creditor must provide a corrected disclosure containing the updated terms. In some cases, this may require an additional 3-business-day waiting period to consummation.
Consummation and Closing are legally distinct although they may occur at the same time depending on applicable State laws. Consummation occurs when you become contractually obligated to the CREDITOR on the loan not, for example, the real estate seller. The Disclosure must be delivered three business days prior to the legal Consummation date.

The post When Do I Get My Loan Closing Disclosure? appeared first on Metairie, Madisonville, Chalmette, LA | Authentic Title & Law Practice.

Page 3 of your Closing Disclosure will compare cash requirements from your Loan Estimate to your actual final charges. If “Did this change?” is “YES” notes for changed sections should be provided.

The bottom line final “Cash to Close” is the money you will need in-hand in three business days.

If your transaction has a Seller the summary table will show a line by line comparison of Borrower to Seller transaction details.

If there is no Seller you may see a Payoffs and Payments table instead.

Review the summary tables to understand the transaction and your financial commitments at loan consummation.

The post Understanding Your Loan: Cash And Transaction Summaries appeared first on Metairie, Madisonville, Chalmette, LA | Authentic Title & Law Practice.

Page 2 of your Closing Disclosure details specific closing costs.

Section A includes: Origination charges collected by the lender Origination fees paid to brokers, loan officers or other parties and Discount Points – prepaid interest. These figures should match your original Loan Estimate.

Section B covers services for which you could NOT shop. The total of these should be within 10% of the total from your Loan Estimate.

Section C covers services you could shop. If you chose providers from the lender’s written list, costs should be within 10% of Loan Estimate. The set of services you can shop may vary on different loans.

The Recording Fees in Section E should be within 10%; other costs in E, plus F, G and H, may vary from your Loan Estimate without tolerance limits.

This page will also break out the costs YOU will pay, before or at closing; the costs the Seller will pay, any costs paid by others and any credits from your Lender.

The post Understanding Your Loan: Closing Cost Details appeared first on Metairie, Madisonville, Chalmette, LA | Authentic Title & Law Practice.

The Closing Disclosure documents the actual terms of your loan transaction. You should receive it no later than 3 business days before consummation. It must be in writing – paper or digital.

If the loan terms or costs change prior to consummation, your lender must provide a corrected disclosure AND an additional 3-business-day waiting period until loan consummation.

Waiving the 3-day waiting period is only permitted in certain circumstances, and only when the waiting period would cause a bona fide personal financial emergency.

The post Your Rights And Rules For Closing Disclosures appeared first on Metairie, Madisonville, Chalmette, LA | Authentic Title & Law Practice.

Page 3 of your Loan Estimate includes measures to help you compare loans.

“In X Years” shows the total amount you will have paid in that time, and the dollar amount applied to your loan principal. The ratio between total paid and principal reduced may change over time.

The APR shows interest PLUS fees as an annual ratio – APR is the actual percentage this loan costs per year.

The TIP figure relates the interest you will pay over the life of the loan to the loan amount. For example – a TIP value of 25% on a $100,000 loan means you will pay $125,000 – $100K principal plus $25K interest – over the life of the loan.

The post Understanding Loan Estimate Comparisons appeared first on Metairie, Madisonville, Chalmette, LA | Authentic Title & Law Practice.