If you are buying a home this fall, you should know that there are new timing requirements around disclosures that may affect your closing. Last minute negotiations and changes could cause a delay to the closing – especially if you have seller and buyer transactions dependent on each other.
This October when the Consumer Financial Protection Bureau’s (CFPB) new TILA-RESPA Integrated Disclosure (TRID) Rule goes into effect, a home buyer will receive two simple mortgage disclosures:
• The Loan Estimate Form, a detailed line-item breakdown of fees, cash needed to close, rate, terms and costs over the life of the loan. The Loan Estimate must be provided to you within 3 business days of submitting your application.
• The Closing Disclosure Form, which is similar to the Loan Estimate, but also separates which costs are paid by the buyer, seller, and third parties. You must receive the Closing Disclosure 3 business days prior to closing.
The objective of changing these forms is to make the home loan process more streamlined and transparent. The new forms will allow you, as the consumer, to more easily understand the major features, costs, and risks of the loan for which you are applying.
At PrimeLending, we understand these new requirements and we have processes in place to keep closings on schedule. If you have questions about these new TRID forms and rules, I can help.