As many buyers in the real estate market may know, beginning this October there are changes in effect for closing transactions with a mortgage. Sellers should also become familiar with these changes as their side of the transaction will also be affected.
Today I attended a closing on a transaction that was signed up “PRIOR” to the new rules and therefore was not subject to the new requirements. But all of us there were discussing how the sale would never have happened that day under the new rules.
Under the new rules, the closing statement must be prepared and provided at least 3 days prior to the closing. For the most part, that statement cannot change without having to wait another 3 days to close. Today, the closing statement changed (3) times. I’m not going to lay the blame on any party for missing items or making mistakes, but the reality is that today: the corrections were made, sent to the lender for approval and we closed with the modifications.
What would have happened if there was a moving company hired? If the seller needed the funds that day to purchase another home? Like other changes, the professionals involved in real estate transactions will figure out how to get it done effectively. But during that learning curve I foresee plenty of problems.
And remember, the final closing statement 3 days prior to closing is just one of the new changes.