Buying a new home is exciting, exhilarating, and more than a little daunting. Making the big decision to buy, reviewing your finances, looking at multiple properties, comparing schools, and that’s just the start! Somewhere in there you’re also packing, scheduling the movers, and giving notice at your rental or maybe even putting your current house on the market.
Amidst all of this, you meet with the credit union to finalize the closing paperwork on your mortgage loan. As you review the numbers (yet again), you notice a fee that wasn’t previously listed. Or maybe the interest rate isn’t what you remember jotting down in your many, many notes. While you don’t want to risk losing the new house, you know these seemingly small changes could add up to thousands of dollars over the life of the loan. Unfortunately, this scenario was previously all-too common for thousands of home buyers who felt they had no choice but to sign anyway. But this is no longer the case.
Mortgage Loan Disclosure Changes Help Consumers
Thanks to federal changes locking in your rate and terms recently became a whole lot easier for all Madison mortgage loans.
Lenders are now required to provide a loan estimate after you apply, clearly outlining your terms. Applicants have always received something similar before but now it’s binding. Three days before you close, applicants receive a closing disclosure confirming your terms. Lenders cannot change terms or add additional fees.
These changes don’t sound complicated but making these changes system-wide was a massive endeavor. In fact, this could be the largest update in the mortgage lending system in recent memory. How big? Consider how many businesses handle real estate transactions including real estate agents, mortgage brokers, bankers, private lenders, credit unions, and so on. Every single one, including Dane County Credit Union, must now comply with these new guidelines, providing a binding agreement confirming the same terms you originally agreed to.
Madison Area Mortgage Loans at DCCU
If you’re considering a new home or refinancing your current mortgage loan, take the time to compare mortgage rates and then sit down for a friendly mortgage loan consultation at Dane County Credit Union. DCCU continues to offer a wide variety of mortgage options. Whether you decide on a fixed rate or ARM, you want to feel confident about signing with an organization you know, and most importantly, trust.