On October 3rd, 2015 new home closing policies go into effect. While they are in place to protect the borrower, the can potentially disrupt the selling – buying – move-in timeline. Instead of closing on the sale of an existing property and closing on the purchase of a new property in the same day, there is now a mandatory 3-day waiting period between the two.

For any mortgage loan closing after October 3rd, the following documents must be provided:

  • LOAN ESTIMATE – a Loan Estimate document must now be presented to the borrower within three days of loan application submission.
  • CLOSING DISCLOSURE – a Closing Disclosure must be provided to the borrower at least three business days prior to the closing. A new Closing Disclosure must be drafted with each change to the deal and a new 3-day waiting period must be instituted.

What does this mean to a potential home buyer? The 3-day waiting period does not allow for a “stacked closing.” This means you can no longer use the proceeds of your home sale to purchase a property in the next hour. You must wait the three days.

Hiring a closing attorney and lender that understands these new regulations is key. You want to ensure that your team – agent, lender, and attorney – work closely to ensure that are no delays in the closing process.

To read more about these regulations, visit AJC.com: http://www.ajc.com/news/lifestyles/home/new-regulations-about-closing-process-go-into-effe/nnFwH/