If you have applied for a mortgage or loan, you will most likely be sent a Closing Disclosure form from your financial institution before your application can be processed. This form is issued three days before signing the mortgage documents, and contains the final accounting of your mortgage closing costs, interest rate, fee structure, the monthly mortgage payment, and final total of the banking charges.
Loaning officers often advise applicant’s to compare the closing document with the loan estimate provided by the bank before signing the dotted line. A thorough follow-up is essential in noting any substantial changes made in the document.
The “Three-Day Rule”
Many financial institutions will have a “Three-Day Rule” in regards to Closing Disclosure forms. The form is forwarded to the customer to check for errors or discrepancies in the loan records, in comparison to the details provided in the Loan Estimate. If issues are found, the lender can approach the settlement officer within three business days for clarification and necessary corrections. Even errors that may seem negligible or trivial, like misspellings and typos, need to be rectified during this time. While evaluating the document, there are some very important areas of concern that lenders should pay attention to.
If you notice any undisclosed changes in your closing document, then it is highly recommended that you inform the loaning agent. If the form is error-free and successfully meets your expectations, you can continue with closing the negotiations.
If you’re looking for an excellent home mortgage, look no further than PCT Federal Credit Union. We can help you find the mortgage you deserve at rates you can afford. For more information, please stop by our branch location, visit our website, or call us at 508-291-0777. We’re here to help you reach your financial goals and get you in your new home!
Loaning officers often advise applicant’s to compare the closing document with the loan estimate provided by the bank before signing the dotted line. A thorough follow-up is essential in noting any substantial changes made in the document.
The “Three-Day Rule”
Many financial institutions will have a “Three-Day Rule” in regards to Closing Disclosure forms. The form is forwarded to the customer to check for errors or discrepancies in the loan records, in comparison to the details provided in the Loan Estimate. If issues are found, the lender can approach the settlement officer within three business days for clarification and necessary corrections. Even errors that may seem negligible or trivial, like misspellings and typos, need to be rectified during this time. While evaluating the document, there are some very important areas of concern that lenders should pay attention to.
- Unnecessary penalties or processing fees included in the final amount of the loan
- If the Estimated Total Monthly Payment mentioned in the Closing Document form does not match expectations, talk to the lender as to why the change was made
- Deviation from the previously discussed Annual Percentage Rate (APR) of the loan
- Double-check the closing cost, and talk to the lending agent in case any changes are noticed
- Changes made to the loan product from Fixed to Adjustable-Rate credit without notification
If you notice any undisclosed changes in your closing document, then it is highly recommended that you inform the loaning agent. If the form is error-free and successfully meets your expectations, you can continue with closing the negotiations.
If you’re looking for an excellent home mortgage, look no further than PCT Federal Credit Union. We can help you find the mortgage you deserve at rates you can afford. For more information, please stop by our branch location, visit our website, or call us at 508-291-0777. We’re here to help you reach your financial goals and get you in your new home!
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