You’ve likely heard of the Truth in Lending Act (TILA) – but you may not be completely sure what that really means, or more particularly what that may have to do with Title Insurance.
Truth in Lending & Real Estate
What is Truth in Lending?
The Truth in Lending act is something that is put into effect to protect consumers. It requires that lenders provide you with all the loan details and cost information so that you can be fully prepared for whatever loan or credit you may be applying for. For loans that comply with TILA, you legally have 3 days to rescind your loan if you determine that it is more than you are willing to commit to.
How does Truth in Lending Affect your Home Purchase?
When preparing for a new mortgage loan, chances are you’ve become pretty familiar with interest rates and loan terms. You’ve probably talked to a mortgage specialist (if you haven’t yet, we’ve created some pretty incredible relationships with some of the best there is – just reach out, we’ll be happy to introduce you!), and are aware of the different types of loan opportunities that are available for your particular situation. There are a lot of options available.
What you’re likely also aware of is that your loan comes with costs and fees. There are fees that cover the beginning and the closing of a loan, as well as all the parts in between. These fees will be provided to you in the form of the Truth in Lending disclosure, which helps you understand just what the actual cost of your home will be over the term that you carry the loan. Your lender will make sure you receive those documents along with the Good Faith Estimate (we’ll cover that in another article), so that you can be an informed consumer.
Remember – the home purchase process can be overwhelming, but you don’t have to go it alone. You have a right to understand exactly what’s happening every step of the way. And if you’re not sure? Well, get in touch. We’ve got connections with both Realtors and Lenders – and we’d be happy to help you navigate the process.