Home Buyers: Say Goodbye to the old HUD-1, GFE, and Truth-in-Lending Forms, Starting August 1, 2015

New forms, a "Loan Estimate" and a "Closing Disclosure," replacing those formerly required for taking out a home mortgage.

If you're among the lucky few who will pay all cash for your home, you can stop reading right now. If you are among the many who will be taking out a mortgage loan, however, and who may have read in Nolo books or articles that the required forms included a HUD-1 Settlement Statement, a Good Faith Estimate, and a Truth-in-Lending disclosure form, keep reading.

These forms will no longer be used for borrowers who submit a mortgage application on or after October 3, 2015 (this date was extended from August 1, 2015). Hopefully, the change will be for the better. It's a move meant to simplify matters for consumers, consolidating the information conveyed and highlighting the significance of important loan terms.

The replacement forms will include a "Loan Estimate" and a "Closing Disclosure." They were created by the Consumer Financial Protection Bureau, after a long process of gathering input from consumers and real-estate industry groups.

You will receive the first form, the Loan Estimate, within three business days after you submit a loan application. It will summarize the key loan terms and estimated loan and closing costs, such as monthly principal and interest, estimated closing costs, and how much cash you are likely to need to come up with for the closing.

The second form, the "Closing Disclosure," will come your way three business days before your close of escrow. Its purpose is to provide a more final accounting of the transaction, covering the same terms, but with exact statements of costs and required cash.

For more information, and samples of these forms, see the "CFPB Finalizes “Know Before You Owe” Mortgage Forms" page of the Consumer Financial Protection Bureau's website.