Forms are Good News for Buyers, but N.A.R. Says Add 15 Days to House Contracts…
The 2 new “Know Before You Owe” federal mortgage forms replace 4 existing forms, and their use will be required starting October 3. Experts across both the real estate and mortgage industry agree that these forms provide additional clarity on the mortgage terms, which should help protect home owners from surprise charges.
Though actually a simplification and reduction of current mortgage application forms, the change over will likely cause a delay for many home purchase closings (at least temporarily). N.A.R. recommends real estate professionals add 15 days to contracts to accommodate for the delay.
See the Fed’s official comparison of the old forms and the new “Know Before You Owe” forms here: http://www.consumerfinance.gov/knowbeforeyouowe/compare/