Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase.
This morning I sat down with Danielle Engels from Dakotaland FCU. Today, she talked about the Closing Disclosure given to buyers at the end of the closing process. You can reach Danielle at 605.697.5922 or firstname.lastname@example.org Her office is located at 2423 6th St., Brookings SD 57006 or on the web at www.DakotalandFCU.com
What is the Closing Document?
- Hey, good morning everybody. How ya doing? Thanks for tuning in. This is Shane Andersen with the Brookings Home Team, powered by Century 21. I got Dani here from--
- Dakotaland Federal Credit Union. It's Monday morning, 8:15. That's why my brain's not moving here. So, sorry about that.
- That's okay.
- But we are here for the Monday Morning Mortgage Tip with Dani and first of all I wanna thank everybody for tuning in and watching over the past year. It's been awesome to see all the comments and everything. So, please continue to do that and after this video, if you have questions for Dani, I'll have all of her information available to reach out to her. So, with that being said, what do you have for us this morning?
- Well, good morning. This morning I thought we could talk a little bit about the closing disclosure.
- Up front when a borrower is applying, and once we get a purchase agreement an accepted purchase agreement, we have to generate some initial disclosures which includes a loan estimate. And a loan estimate is gonna be a breakdown of your loan amount, your interest rate, giving you an estimated monthly payment. Whether or not we're gonna be escrowing for taxes and insurance. And then it's gonna give you a whole list of estimated closing costs. Things like origination fee, credit report, flood search, your title work, what we put in an estimate of what your homeowner's insurance will be. So, basically we try to give the borrower an upfront idea of what their total closing costs would be. Fast forward a little bit, when we get closer to closing, then we have to generate a preliminary Closing Disclosure and we have to give that to the borrower three days before closing. That is a requirement or a rule, so we try to have obviously all the numbers specified or zoned in, figured out at that point. And then if anything does change or if we're still matching numbers with the title company, we just work with the borrower at that point and stay in touch with them as far as what their final closing cost would be. And then when they go to the physical closing, they'll sign their final version of the Closing Disclosure.
- Okay, so I think you mentioned there's a three day rescission period. How does that work?
- So, we have to as far as sending that Closing Disclosure out, we have to do that three days before closing, yes.
- So, if anything would change that's substantial. I know that's probably getting into a lot of specifics but there's certain buckets that have different tolerances. So, if it's something major that has to change, and we had to update that before closing, then potentially that could kick your, push your closing back. If it's something minor and it's within that tolerance level we can tweak that and then you can still move forward as far as your closing date.
- Perfect, yep. So there's a lot of little pieces that fall into place with this closing document. And as she mentioned, there's like three different phases
- There is.
- for it, as well. This is just a high level view of the closing documents. As far as, what to expect as you go through the home buying process. And this is required with any financial institution that's doing the lending side of things. But if you have any more questions on that, would like to see a little bit more on that, please contact Dani here. I'll have all her information on the top, on the bottom, on the sides. Wherever that device allows you to see it. And she'd be happy to go into a little more detail. We can't cover it here in just the two or three minutes.
- No, there's too much information.
- Way too much on that, but we've had a few questions about it and I thought it was a good time to throw it out there for all of you to see. So, again thank you for watching. That concludes this week's Monday Morning Mortgage Tip, we'll be back next week. And again, contact Dani if you have any information, or would like additional information on that. And direct message us below here again, wherever your device allows you to do that. And we'll be happy to answer any questions that you have for us on our next episode. Thanks again for watching and have a good week. Talk to you later.
- Happy Monday, bye.