The TILA RESPA Integrated Disclosure (TRID) Rules Defined

Lets Talk About TRID

On October 3rd this year the much awaited TRID comes into effect. What is TRID you ask? I'm going to simplify this into everyday terms. TILA is the Truth in Lending Act and RESPA is the Real Estate Settlement Procedures Act and TRID is the TILA RESPA Integrated Disclosure. 

In a simplified way this rule with affect anyone and everyone involved in a home loan and in purchasing or selling of a home. 

The Rule makes sure that certain deadlines are met.  For example -

• once you have found a property that you like and have given all the required documentation to a lender, they will have only 3 business days to come back to you with a quote. 
• The loan document has also revised and simplified so that it is more understandable and contains all the relevant details you need to know about the loan, the fees and the loan process.
• The quote is not an approval, it is a fixed offer from the lender. The great thing about this is you can apply through various lenders and find the best deal. 
• Once you have made your decision on which lender you will be working with, you need to let them know that you wish to proceed. 
• Clearly if you change to a different property or require a different amount, it would be treated as new details and the 3 business day rule will apply.

The Closing Statement 

• Has to be received by the parties 3 days prior to closing on a property.
• There should no longer be huge disparities between the lender quote and the final documents and statement that you receive. 
• There may be a few small added costs, but no longer will you see a big change in the amount quoted and the amount to be paid and you would not be under pressure to sign the acceptance and loan documents at the last minute of closing. This is a positive move. 
• What it does mean, is that the Real Estate Brokers, the lenders, creditors and the closing company/attorneys need make sure that their documentation is in order and handed in on time to ensure a prompt closing.

The TRID process should ensure smooth and timely closings which will take a lot of stress out of the final day of closing on your home.

Keller Williams Realty is ready and committed to assisting you in this process. My name is Karen Browder and I want to assist you in your real estate transaction. It does not matter whether you are buying or selling a home in the Greater Charlotte and surrounding areas, I want to share my expertise with you. I have your back.

For more information, please give me a call or text me - 704-534-9334 or email Karen@KarenBrowder.com