You may or may not have heard of TRID. But, the real estate industry has been preparing for a big change come October 3rd…Yes, only 9 days away! Here’s a quick rundown on what TRID’s changes mean to you as a Buyer, Seller, or someone preparing to move.
Awesome Benefits Coming To Everyone…
-Lenders have to provide the Loan Estimate and Closing Disclosures 3 days prior to closing for the Buyer. Three days is the guideline right now but not the rule. Sellers are not protected by the same strict 3 day rule, but I think Sellers will likely be seeing closing documents early as a result. This is going to be an awesome improvement to standardize.
As A Buyer…
- Closing Documents: If you haven’t purchased a home before you won’t notice any major changes. The biggest difference will be that the financial documents given to Buyers at the closing table are much easier to understand. If you have previously purchased a home, the documents will look different but say the same thing. The new 5 page Closing Disclosure will replace the HUD-1. I really like how consumer friendly the new documents are and I think you will too!
- Intent To Proceed: When initiating the loan, Buyers will be sent a Loan Estimate and Intent To Proceed. It’s important to sign and return this document in a timely manner.
- Appraisal: It has been standard practice to order the appraisal after the inspection resolution. On the new timetables, to stay on track with a 30 day close, I would highly recommend ordering the appraisal shortly after going under contract.
- Increased Security: It is likely Title Companies and Lenders will providing documents through a secure email systems or encryption software.
- Choosing A Qualified Team: It’s important to choose a qualified team to represent you. This means a reputable lender, Realtor, and title company. My preferred partners have been preparing for quite sometime for this adjustment. As your Realtor I do a lot of work behind the scenes and have prepared for this transition in how I write your contract, dates & deadlines, increased communication, and increased security measures. But I would just hate for your real estate deal to have a glitch or terminate because you chose professionals who were not educated on the TRID changes.
As A Seller…
- Closing Documents: If you haven’t sold a home before you won’t notice any major changes. The biggest difference will be that the financial documents given to Sellers at the closing table are much easier to understand. If you have previously sold a home, the documents will look different but say the same thing. The new 3 page Closing Disclosure will replace the HUD-1. I really like how consumer friendly the new documents are and I think you will too!
- Choosing A Qualified Team: It’s important to choose a qualified team to represent you. This means a reputable lender, Realtor, and title company. My preferred partners have been preparing for quite sometime for this adjustment. As your Realtor I do a lot of work behind the scenes and have prepared for this transition in how I write your contract, dates & deadlines, increased communication, and increased security measures. But I would just hate for your real estate deal to have a glitch or terminate because you chose professionals who were not educated on the TRID changes.
- Increased Security: It is likely Title Companies and Lenders will providing documents through a secure email systems or encryption software.
It might be a little rough getting these new changes implemented. But, I see these changes all in all being a welcome step forward for the real estate industry and consumers alike. I am not a lender or title rep (who are seeing the most change) but feel it is important for my clients to know about major updates in the real estate industry. As your realtor I have educated and prepared myself for this major update so that I can bring accurate knowledge to the you in our deals moving forward. Of course, if you have any more in depth questions I’m always happy to answer them.
Notes: The information discussed above primarily pertains to primary loans. The Closing Disclosure replaces the HUD-1 for all loans except HELOC’s, reverse mortgages, and second loans with down payment assistance.
