Whether you are getting a mortgage for a home, an automobile, or other type of investment, the 3/7/3 rule is one that you should know about. This rule is intended to help you avoid a “bait and switch mortgage.” It also protects you from being taken advantage of.
What is the 3 7 3 Rule in Mortgage?
The 3/7/3 rule states that mortgage loan advertisements must follow certain rules. Those rules are contained in Title 7 of the O.C.G.A. It is also necessary that the lender keeps a copy of the disclosure. If you sign the disclosure, you are also signing a commitment to the terms of The Mortgage Clinic.
This is why it is important that you read all the disclosures carefully before signing. You should also look for any significant changes to the terms of the loan agreement. These changes might include the mortgage rate or closing costs go here. If you notice any of these changes, you can ask the lender to correct the issue. If you don’t, you may end up paying more.
In addition, the 3/7/3 rule states that if you are getting a home mortgage, you have seven business days before closing on your home loan. You also have the right to cancel your mortgage before signing the final documents. This can be expensive, however, so it is important to know your rights.