Back in May of last year, I first spoke about new rules going into effect regarding home loan paperwork. The Consumer Financial Protection Bureau wanted to streamline the process to make it easier for Buyers to understand. Thus, TRID was born. But what have been the TRID effects on Reno Buyers since its inception in October 2015? Buyers have come away with both positive and negative experiences so far.
TRID Effects on Reno Buyers Since Its Inception
One of the positive TRID effects on Reno Buyers has been that the paperwork has indeed gotten a bit easier to understand. A Loan Estimate form must be provided to the Buyer within three days of applying. Also, Buyers must be provided with a Closing Disclosure form which clearly states all the fees, terms and estimated closing costs a Buyer should expect from their loan process within three days of signing their loan documents, ie "closing". Any changes made during the loan process must be reflected on the Closing Disclosure form. By providing this information in each document, Buyers will have a more complete picture of their transaction.
In this case, time can be a Buyers' enemy. That is one of the biggest adverse TRID effects on Reno Buyers. The time restraints the new TRID forms put on escrow officers is intense. They have to coordinate figures from several different parties in order to compile the necessary information. If one part of the equation is slow in getting back to the officer, it can bog down the entire process. When the information is not completed within the required three days, it has to be scrapped and started all over again. Approximately 90% of lenders have said that delays have tacked on an average of one week to the loan process. Unless you are an all cash Reno Buyer, a 30 day escrow could very well be a thing of the past.
Are you confused by TRID? Contact me to find out more about this new system. I am always happy to help.
Charlene Hamilton, Your Reno Real Estate Specialist
Originally posted on my Reno real estate blog here: http://charlenehamiltonrealestate.com/reno-home-sales/trid-effects-on-reno-buyers.
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