Understanding the ins and outs of your loan can be tricky and the important dates involved are sometimes misunderstood.
Consummation is the day the borrower becomes legally obligated under the loan, which goes into effect the date of the signing, even if the loan has a rescission period.
A common misconception is that consummation and the closing date are the same. Make sure to review the terms and dates outlined in your purchase agreement where the buyer becomes contractually obligated to a seller on a real estate transaction.
It’s worth noting that if a federal holiday falls within the delivery and/or waiting periods you should add an additional business day. Also, the three-day period is measured by days, not hours, so disclosure must be delivered three days before closing and not 72 hours prior to closing.
Disclosures may also be delivered electronically to the delivery period and may be signed in compliance with E-Sign requirements.