So the whole real estate professional world are going crazy. They are falling all over each other because of this new thing called TILA-RESPA. Let me break it down for you.
The whole thing stands for Truth in Lending Act & Real Estate Settlement Procedures Act. They basically used to be 2 documents that was always there but it is now combined into one documents.
It also has to be disclosed to a real estate buyer 3 days before closing if institution bank financing is involved. That’s why they now call it the “know before you owe” law. It is designed to protect you from predatory lending.
TILA-RESPA basically tells you all the numbers at least 3 days before closing. It was suppose to effect on August 1st 2015 but it has been delayed till October 3, 2015. It consolidates everything and makes it even easier to go through your loan contract.
Of course, our team is always here to protect and guide you through your home buying process.
The Truth in Lending Act (TILA) protects you against inaccurate and unfair credit billing and credit card practices. It requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans.
For loans covered under TILA, you have a right of rescission, which allows you three days to reconsider your decision and back out of the loan process without losing any money. This right helps protect you against high-pressure sales tactics used by unscrupulous lenders.