An acronym for a couple of other acronyms
is it as scary as everyone thought?
TILA-RESPA Integrated Disclosure, TRID is the work of the Consumer Financial Protection Bureau. It is the compilation of the Real Estate Settlement and Procedures Act (RESPA) and the Truth in Lending Act (TILA). Any transaction involving a mortgage now uses new disclosure forms. This new rule took effect October 3, 2015.
So how's it Going with the new TRID rules?
A few important details
- The Loan Estimate-this is how Buyers apply for a loan. The new rules mean a lender provides a loan estimate and can only charge you for the credit report if you decide to proceed with the transaction. The lender has to send the estimate within 3 business days after the Buyer applies & the final loan estimate has to be issued 7 business days prior to the closing. Finally-the loan estimate is done in good faith which means if the amounts vary between the Loan estimate and the Closing disclosure-the Buyer may get a refund.
- The Closing Disclosure-the Buyer has to receive the disclosure within 3 business days of closing. This document has all the costs the Buyer will pay. If there are any changes-your settlement may be delayed.
- Timing requirements-as the Buyer, you need to promptly provide your lender with all necessary information. Answer all emails and phone calls to ensure the home buying process happens on time. When issues or problems arise, be in contact with your lender. A lack of prompt communication could cause a closing delay and other problems. Many of the timing requirements are out of the Buyers control. This is when you rely on your team of experts to get you to settlement on time!
The #1 tip for Home Buyers
Choose an excellent, local Lender & Settlement company
Buyer Tips for Closings within 3 weeks
- pay an extra $150 to get an appraisal in 3 days
- Provide all the necessary documents within 24 hours of the contract approval
- Choose an excellent title company who will process a title order quickly
- Buyers must get insurance policies set up early and do not wait till the last minute