There are new rules regarding home loan applications that went in to effect in early 2016, referred to as TRID.
New home loan applications will now be subject to the Consumer Financial Protection Bureau’s final rule for TRID. TRID stands for TILA-RESPA Integrated Disclosures, forms that will replace existing closing disclosures as well as the HUD-1 settlement statement. The introduction of these new forms will come with new procedures and deadlines. These changes will primarily affect operating procedures from mortgage lenders and their third-party service providers, such as title companies.
What does this mean for you?
- In the past, we were able to settle in 30 days. With the new rules in place, settlements will need to be at least 45 days until the kinks are ironed out.
- Because timelines are firmer under the new rules, it is important for you to provide your lender and settlement agent with information as soon as it is requested.
- Strict deadlines mean that it is even more important to select a qualified AND experienced lender and settlement company (we can help you with this).
- It is also important that you select your lender and know what type of loan you are going to use before writing an offer.
If you have questions about the buying or selling process, or obtaining a loan, please contact us. We are happy to help you through the process.