Legal Tip presented by:
Leigh Clack, Neel & Robinson, Attorneys at Law LLC
22 Lenox Pointe, Atlanta, GA 30324
lenox@neelandrobinson.com 404-705-3690 fax 404-705-3697
Keller Williams Realty Atlanta Real Estate Legal Tip:
Waiting Periods required under New Truth in Lending Law
For any borrower applying for a loan after July 30, 2009, there are new laws and waiting periods that can affect the closing date.
1. The lender must provide a Good Faith Estimate and other early disclosures within three (3) business days after the loan application is made. This includes the Preliminary Truth in Lending Disclosure.
2. The appraisal can not be ordered until the three (3) business day period above has passed (ordered on the 4th day).
3. The closing can not occur until seven (7) days after the preliminary disclosures are made.
The Preliminary Truth in Lending contains an APR (annual percentage rate) based on the lender rate, lender fees, and settlement agent fees.
If any of these rates or fees change enough to raise the APR by more than .125% (1/8th of a percent), then the lender must provide new disclosures, and three more business days must elapse before the closing can occur.
If the borrowers need additional documents or services from the settlement agent, the charges for these items will increase the APR.
Please tell your lender at the time of application if the borrowers will need any of the following from the closing attorney:
1. Power of attorney
2. Mailing out of documents
3. Preparation of additional deeds for title clearance or otherwise
4. Subordinations of existing loans (refinance issue only)
5. Any other document preparation or additional legal work
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