Real Estate Closing Knoxville, Tn
Below is some general knowledge regarding real estate closing procedures in Knoxville, Tn.
The Loan Estimate
Today, borrowers receive two separate forms from their lender at the beginning of the transaction. This includes the Good Faith Estimate (GFE). Also, the initial disclosure is required under the Truth-in-Lending Act (TILA). The creditor will use a combined Loan Estimate. Lastly, you must provide the new three-page Loan Estimate form to borrowers on a timetable similar to the current receipt of the GFE.
The Closing Disclosure
The combination of forms continues at the end of the transaction as well. This is with the HUD-1 Settlement Statement. Also, the final TILA forms are now combined into a single Closing Disclosure form. Additionally, the financial transaction of the closing of the sale.
Closings are impacted by delivery rules of certain forms
There is a part of the final rule creating these two new combined forms. The CFPB determined that borrowers would be better served by having a short time to review the new Closing Disclosure form. This is before signing their loan documents. As a result, in its rule, CFPB mandated borrowers have three days after receipt of the Closing Disclosure to review the form and its contents.
Note: The three-day review period starts upon the “receipt” of the form by the borrower. Unless some positive confirmation of the receipt of the form (i.e., hand delivery), the form is “deemed received” three days after the delivery process starts (i.e., mailing). As a result, the combination of the “delivery period” and the “review period” results in seven business days (excluding Sundays) from mailing to loan signing.
Title fees may need to be adjusted at closing and explained
Both the new Loan Estimate and Closing Disclosure forms require any listing of settlement service involving title insurance or closing activities preceded by the phrase “Title ”. This will allow the borrower to see all charges in the same area.
The forms have 7 areas for fees
The line numbering on the HUD-1 familiar to most is gone. Instead, the fees are placed on the Closing Disclosure in one of seven areas:
Individual charges within each of these major groupings are alphabetically listed. Columns provide separate charges for the buyer, seller, and others (as well as columns for both payments before and at closing).
You will likely receive more than one Closing Disclosure
The Buyer/Borrower will receive a Closing Disclosure several days before the closing. Also, likely a few days before a walkthrough on the property. Buyers/Borrowers will likely receive a new, adjusted Closing Disclosure at the closing show. Any changes that occurred between the initial disclosure and the closing, including adjustments due to the timing of the closing, walk-through adjustments, and other matters.
Changes may not end there and CFPB mandates that changes in financial disclosure numbers (i.e., changes in a recording fee) in any amount must be re-disclosed, even post-closing.