How The New Closing Disclosure Affects Your Contract

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Closing a real estate transaction is a significant event in a person’s life, and is best done with the help of a good real estate attorney. Having the right advocate on your side is very important to ensuring that your housing contract protects you and that the closing is performed as smoothly as possible. As such, buyers should understand the Closing Disclosure policy in order to avoid making a financial mistake. To make sure you are clear on this policy, there are some specific areas of the Closing Disclosure worth careful consideration.

The Review Period
The Closing Disclosure must be given to the buyers at least three business days before they close on the loan. Before changes were made, the Disclosure was provided at closing or just shortly before closing, which didn’t give the buyers the opportunity to thoroughly look through everything before they were asked to sign. That led to some serious misunderstandings. It also left buyers feeling pressured to sign on the dotted line even if they weren’t sure about the terms, if something had changed or if something cost more than they expected. If they didn’t sign, they didn’t close, so they were forced to make quick decisions, often without the help of an attorney to guide them. Getting the Closing Disclosure three business days before closing helps to avoid those kinds of problems.

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