Weekly Mortgage Memo: TRID
Today’s Topic: TRID
Starting October 3, 2015 all new applications will be using the TILA-RESPA Integrated Disclose guidelines (TRID.) There are a number of changes for lenders, real estate agents, and title companies that we have all been preparing for. Today I want to focus on a handful of things you need to keep in mind to help continue to make the home buying process painless.
Lenders are preparing the Closing Disclosure. This Closing Disclosure is what reflects how much the buyer will need to bring to the closing table. In the past the lender could provide the HUD-1 the day of closing, but now, lenders are required to provide this documentation well in advance. This CD will reflect all fees involved in the process including home inspection, home warranty, termite inspection, structural inspection, etc… Because lenders are required to provide the closing disclosure so early, it’s imperative a buyer stays in constant communication with the real estate agent and lender and act timely when items are requested.
The lender will be sending a Closing Disclosure to the buyer as soon as the lender has a conditional approval. The initial CD needs to be as accurate as possible.
Here are a few tips to help make everything go smoothly:
- Be patient. For now, the 30 day closing time frames are gone. Once everyone (lender, real estate agent, title companies) get accustomed to the new disclosure process we could possibly see the 30 day closings in the future.
- The lender is going to ask the real estate agent to send the invoices for the inspection reports as soon as possible. Try to be as flexible as possible with scheduling times for these inspections. The sooner these inspections are competed to sooner your agent can send the lender the invoice. Examples of inspections: termite, home inspection, structural, warranty, pool, septic, etc.)
- Choose your homeowner’s insurance as soon as possible.
- Sign and return documents as soon as possible
- Throughout the process there will be a combination between contracts, contract addendum, loan disclosures, etc… that will require your signatures. The sooner they are signed and returned, the smoother the process.
- New construction – Try to lock down any changes to the price/contract addendums as soon as possible.
- Choose a title company as quickly as possible
During the early months it is a good idea to allow more time for closing on a home. 45 days makes it more flexible on the buyer, seller, lender/mortgage broker, and title company.
Taylor Ortiz
Sr. Loan Officer
Fairway Mortgage
2575 Kelley Pointe Parkway, Suite 180
Edmond, OK 73013
NMLS ID 449866
Direct: 405-421-0404
Mobile: 405-509-1064
Fax: 405-562-4272