HobnobCharleston Interviews Keith Pruitt on How the New Truth in Lending Laws Could Affect Future Closing Dates Significantly

Charleston, SC, August 03, 2009 --(PR.com)-- HobnobCharleston recently sat down with Keith Pruitt , a local Charleston realtor, and discussed the new RESPA truth in lending laws which took effect in the last week of July. According to Keith these changes could and probably will affect closing dates significantly. If the insurance, attorney fees or amount borrowed is increased in any way, this provision will most certainly affect the closing date.

Effective July 30th 2009, new “RESPA Truth in Lending Regulations have taken effect. These new requirements will apply to all mortgages secured by a borrower’s home, including primary and second homes and refinancing. Investor loans will continue to be exempt. Some of the changes will include:
1) The homebuyer must be provided their appraisal a minimum of 3 business days prior to closing for review.
2) Lenders must give good faith estimated costs within 3 business days of application. No fees can be collected with the exception of a “reasonable” fee for obtaining a credit report.
3) Closing dates will be affected in that the earliest a transaction can close will be 7 business days after the mortgage disclosure letter from the lender.
4) The buyer must be presented a HUD-1 Form (closing statement) at least 3 business days prior to closing. In the past, we have gotten these the day prior to closing.
5) If there are any increases to the percentage rate or APR by .0125 percent or more, the lender must provide a corrected disclosure and again wait 3 business days before closing the loan.

For more information concerning these changes, please feel free to call or email them.

Keith & Kim Pruitt - ABR, Fine Home Specialists,
E. Cooper Top Producer, Realtor of Distinction
Carolina One Real Estate
843.345.1537 - Kim's Mobile
843.270.5677 - Keith's Mobile
843.266.5313 – Office
843.202.8948 - E-Fax
kpruitt@carolinaone.com - email
www.KeithandKimPruitt.com - website

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