Bill Head
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Download the free toolkit for consumers for a complete guide to understanding the true cost of a mortgage.

If you’re buying a house now, you should know that this week the procedures for getting a mortgage are changing. Applications for loans are now required to proceed through a new closing process courtesy of the Consumer Financial Protection Bureau (CFPB). But have no fear. The new procedures are intended to keep consumers well aware of all of their costs before securing financing – and give you time to raise questions before heading to the closing table.

The CFPB realizes that in the past a lot of financial information in mortgages was difficult to understand, and the true cost of a loan could be obscured in mountains of paperwork. To address that, the CFPB has created two new documents which will clearly outline your costs when buying a home and encourages you to shop around for the best lender for your needs.

For example, the old method required lenders to provide both a “Good Faith Estimate” of costs and a “Truth in Lending Disclosure.” New regulations combine those documents into one “Loan Estimate” worksheet which allows consumers to clearly compare loans with a side-by-side comparison. Further, the new “Closing Disclosure” replaces the rather confusing “HUD-1” document and elements from the “Truth In Lending Disclosure” in a format that is easier to read and mirrors the Loan Estimate with the final figures prior to closing on a home.

Easier to read documents are the part of the paperwork that consumers will notice most quickly. The other major part of the new closing procedure is the mandatory deadlines that lenders and title companies must meet in before closing on a loan. For instance, homebuyers must have at least 3 days to review the final Closing Disclosure before the closing on the house may take place. That means there cannot be any significant changes to the loan or closing costs after that 3-day deadline has passed without creating a delay. This is to protect buyers from last minute surprises.

Rest assured, title companies and lenders have been working very diligently to make sure they are ready for the new closing process to take place. If you are currently in the market for a home, you will want to talk to your lender and your MetroTex Realtor and ask them how they have prepared for the change. You can also go to the consumer site at to download guides and worksheets that walk you through what to expect. Your MetroTex REALTOR is always great resource to help you navigate through the new closing process.

If you are interested in buying or selling a home, go to for the most trusted, local and accurate information on the housing market in North Texas.

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