How The New Mortgage Rules Will Affect You

New Mortgage Rules

How The New Mortgage Rules Will Affect You

The pros and cons of the new Loan Estimate and Closing Disclosure mortgage rule.

In an effort to prevent issues in the housing market like the ones we experienced in 2008, the Consumer Financial Protection Bureau has taken some steps to make sure consumers understand the home buying process. Beginning October 3rd, anytime you apply for a mortgage you’ll get new disclosures that should help you get all the information you need in one place.

Here are the pros and cons of this new mortgage rule—consolidating previous disclosures down to a Loan Estimate and Closing Disclosure—and how it will affect you.


Instead of a bulk of information you probably don’t need, you’ll receive just two disclosures during your mortgage process. The first, your Loan Estimate, will be provided by your lender within three days of your mortgage application submission. The main point of the Loan Estimate is to let you know how much you’ll need to pay monthly and how much money will be due at closing. Then, when you’re ready to close on your mortgage, you’ll get a Closing Disclosure finalizing that info.


Once you receive your Closing Disclosure, you’ll have to wait three days before closing. This waiting period is designed to give you ample time to review the Disclosure and get all of your questions answered by your mortgage lender. The problem is that if you make changes during that waiting period, you’ll have to get a new Closing Disclosure with a new three-day waiting period. As you can imagine, this could slow down closing.

Do you want more information about how the new mortgage rules could affect your home buying process? Go straight to the source; contact the experts at Ranch & Coast Mortgage Group Inc. in Solana Beach, California. We’ve been keeping up to date on the latest with these rules so we can keep you ahead of the curve.