If you are in the market for a new home, especially first-time buyers trying to take advantage of the $8,000 tax credit (time is running out!), there are some new government regulations that could affect closing time for you. 

The government’s goal for these new regulations, known as the Mortgage Disclosure Improvement Act, is to allow the seller some time to truly understand what they’re getting into.  The recent tidal wave of foreclosures proves that buyers might not have been paying attention to all the details outlined in their gigantic mortgage contracts.  Now time is given to basically force buyers to understand what they’re signing:

• The Initial TIL (Truth in Lending) disclosure amendments state that a seven-business-day waiting period is required between the delivery of initial disclosures and the signing of closure documents.  This will eliminate the possibility of closing in less than seven business days unless the borrower faces a genuine personal financial emergency.
• Up-front fee collections cannot be charged until after the borrower receives the initial disclosures.  If disclosures are mailed, the fee is charged the fourth business day after mailing, and if they are hand delivered, the fee is charged the same day.
• Re-disclosed TIL’s must be sent to the customer no fewer than three business days prior to closing, if the interest rate or fees change causing the APR to increase by more than %0.125.  Each time the TIL is re-disclosed, the waiting period starts over and could affect the closing date.  If the rate is in float status (when APR is not fixed), then re-disclosures do not need to be sent.  Ideally re-disclosures should be sent eight business days before closing.

The Houston real estate market is slowly, but surely recovering!  First-time homebuyers, take advantage of the $8000 tax credit while you still can!  Remember, you must close on your home before December 1^st, 2009!  Contact the Puryear team if you are interested in pursuing your dream owning your own property, selling your property, or upgrading to a luxury property!