Do you remember the phrase that “Cash is King”? Well that is more important than ever now. That is because you will not necessarily need these new closing disclosure and loan estimate in lieu of the HUD-1 settlement statement and the good faith estimate. Additionally, an appraisal is not required, but recommended for cash transactions.
The closing disclosure and loan estimate are required to be completed three days prior to closing. If al the parties (i.e. lenders, title agents, buyers and sellers) do not agree with these new forms, a new three (business) day period can kick in and delay the closing. You have until October 3 to get familiar with the new forms and using the new closing procedures. Although these forms are made to make the closing costs easier to understand, it could delay closing on homes in the future.
On January 1, 2015, the entry barrier for both Certified Residential and General Appraisers increased to a Bachelor’s degree or higher (in any field) from an accredited college or university. These requirements are effective for real property appraiser credential after January 1, 2015. When you also include the requirements for both VA and FHA appraisals, the pool of available appraisers is limited. For example, a VA appraisal is allowed only 10 business days to be completed. With a limited number of available and qualified appraisers, this could become harder and harder to meet.
Although the adopted regulations are intended to help potential property owners, it is hard to imagine that we are not going to see delays in closings. Cash is king!!!
Thinking of buying real estate? You should consider using a realtor. If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty at 2119 W Brandon Blvd, Brandon, Florida 33511). As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota. The Keller Williams offices of ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico. My email address is firstname.lastname@example.org, or call me at 813.205.9280. If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.