Selling and buying real estate after Aug. 1 will entail changes during the closing process.
Because of new disclosures and regulations required by the Consumer Financial Protection Bureau for the new Real Estate Settlement Procedures Act and Truth in Lending Act changes, the mortgage process should be improved for consumers. The changes are designed to help buyers understand the mortgage process, aid in comparison shopping and help to prevent surprises at the closing table.
Among the new rules:
A new loan estimate document that replaces the Good Faith Estimate and the initial Truth in Lending disclosure.
A new closing disclosure document that replaces and combines the HUD-1 and final Truth in Lending disclosures.
Loan estimates must now be given to consumers within three business days of applying for the loan.
Types of loans covered include most closed-end consumer mortgage loans. Among other exceptions, the changes do not apply to home-equity lines of credit, reverse mortgages and mortgages secured by mobile homes.
People who intend to buy or sell real estate after July should contact their attorneys as soon as possible to discuss how the new federal laws, closing procedures and documents could potentially cause delays.
“It’s crucial that Realtors and consumers understand these new procedures so that there are no surprises at the closing table,” S.C. Realtors CEO Nick Kremydas said.
Sabal Homes of Mount Pleasant will build homes in The Coves at the Lakes, a new waterfront community in Cane Bay Plantation northwest of Summerville.
The Coves is developed around a 340-acre freshwater lake. Homes are priced in the low $300,000s.
The development includes lakeside walking trails and biking paths, fishing and boating, and an eight-mile blue-way for kayaking, canoeing and paddleboard- ing.
A 53,000-square-foot YMCA complex is slated for construction in the community as well.
Reach Warren L. Wise at 937-5524 or twitter.com/warrenlancewise.