TRID-RESPA takes effect October 3. In a class yesterday, we learned that if a buyer is not full-document conditionally pre-approved before entering into contract, then expect delays. This means that the buyer has furnished all required financial documentation to the lender AND it has been verified.
Buyers: Don't even think about viewing houses until you attain full document conditional pre-approval with your lender of choice.
Sellers: When you receive an offer on your house, ask to see a full-document conditional pre-approval letter from the buyer's lender. If the potential buyer doesn't yet have it, keep your house on the active market while the buyer goes to get it. You can accept an offer contingent upon the buyer obtaining such pre-approval within a 5 business days.
I ran across a helpful toolkit furnished by the Consumer Finance Protection Bureau (overseers of these new regulations). Click the link below to view or copy and paste into your web browser:
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