October rollout of TRID: Don’t Let It Scare You Out Of Buying A Home

Navigating the TRID HighwayIf you have a pulse, you’ve probably heard about changes to the mortgage approval process that may be making you wonder if it’s become too difficult to purchase a home. Especially with some lenders and real estate agents quaking in their boots about the changes and “government intervention” it’s easy to feel like there are too many forces working against  you. The fact is that the TRID changes were designed to, and in fact DO simplify the disclosures that you as a buyer must read, and make the process more straightforward. Be forewarned however, if you’re working with a Realtor, lender or title agent that hasn’t done the work to learn the new system, you may at risk. Here’s a simple primer:

TRID stands for TILA (Truth in Lending Act); RESPA (Real Estate Settlement Procedures Act) Integrated Disclosures. The long and short of it is that where there used to be several disparate programs and disclosures that were developed to inform and protect consumers during one of the largest transactions of their lives, there is now a more simplified, integrated method of helping buyers understand the terms of their loan and related decisions. One of the side effects of this, and in order to ensure that consumers are receiving the necessary information, there are more stringent timelines, and that is what is causing less than professional professionals to either freak out, play the blame game, or bury their heads in the sand (I actually heard a real estate agent state that he was pretty sure the government wouldn’t actually force these changes after the program was already rolled out!).

As a consumer, what do you need to know? Here are the simple facts:

*  The TRID guidelines have absolutely no impact on interest rates or general terms of loan programs

*  It has not gotten easier or harder to qualify for a loan…however…

*  It has become more important than ever to get your lender what he or she needs as soon as you are asked for it

*  It  has also become more important than ever to be tech savvy enough to use whatever e-signature program you are asked to use

*  Close of escrow time frames will likely be longer than 30 days until next year when the initial bugs are worked out

*  It is absolutely essential, whether you are a buyer or a seller, in order to protect your interests and experience a smooth transaction, that you work with professionals who are trained, knowledgable and savvy about the changes, and can work well together. If you are interviewing Realtors, make sure you ask what they understand about TRID and what they intend to do in order to lessen the impact of it on your transaction.

 

 

 

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