For more than 30 years, federal law has required mortgage lenders to provide two different disclosure forms to their borrowers after applying for a mortgage and two different forms at or shortly before closing on their mortgage loan.
When applying for home financing your actions regarding credit score, finances and employment not only apply to pre-approval but the time between loan processing and closing. Avoid making these common mistakes while waiting for closing day.
Buying a home is likely the largest purchase you will make in your lifetime, so protecting your assets is a must as a homeowner. There are several different types of insurance associated with purchasing a home, some of which you have control over and others required by your mortgage lender to protect their collateral.
When applying for a mortgage, determining how big of a monthly payment you can afford can sometimes be a complicated situation. In the past, this has led to the problems the big banks are now facing with faulty mortgages and pay backs. In order to rectify some of these problems, new laws are going into effect that will better protect the consumer, as well as the lenders, to make sure that the buyers receiving a mortgage are actually qualified for their loan.
Starting today, the Dodd-Frank Wall Street Reform and Consumer Protection Act requires lenders to take more consumer financial information into account when making mortgage loans. The Consumer Financial Protection Bureau’s Ability-to-Repay rule protects buyers by making sure they can afford to repay the loan.
Under the Ability-to-Repay rule, a lender must verify your ability to repay using proper documentation. The proof of the following types of information will be required from buyers for all loans: