TRID, what does it mean and what is the impact on Franklin TN Real Estate
TRID stands for the TILA RESPA Integrated Disclosure and this new rule goes into affect October 2015. TILA is the Truth in Lending Act that was originally enacted in 1968, RESPA is the Real Estate Settlment Procedures Act passed by congress in 1974.
These two rules and regulations guide lenders in the conduct of their business and dealings with customers. Well now these are changing and the date of this change is October 2015. The change is creating two new forms. The first is the Lending Estimate Form that has two be delivered within 3 days of the loan application. The second form is the Closing Disclosure and it may change but from the validated receipt of the first Closing Disclosure the customer may not close on the mortgage loan for 3 days. The lender cannot request the Closing Disclosure without certain approvals, the appraisal and other documentation from the title company. This means that the consumer could expect delays in the length of time it takes to go from a contract to a closed loan and purchase. This will affect you as a buyer in Franklin TN as your contract needs to plan for the required time to get the financing done. But even more the sellers will need to know how they are impacted by buyers that have mortgages to procure and knowing these rules will allow you to make better plans for your closing. The Relocation Engineer, Mike Grumbles, is working closely with lenders, and title companies to make sure that our clients and future clients have an enjoyable home buying process and making every effort to keep things on time. If you want to know more about how TRID affects you call us at 615-587-5843.
- Lenders will jave to send out the LEF (Lender Estimate Form) within 3 days of the complete application (6 items) is submitted.
- Customer has to sign a letter of intent prior to lender ordering the appraisal.
- The Closing Disclosure (CD) is now prepared by the lender and not the title company and this will replace the old HUD-1.
- The CD cannot be sent out without an appraisal being completed.
- The CD cannot be sent out without the homeowners insurance in place.
- The Mortgage Insurance Certificate is needed to get the CD sent out.
- The customer must have the CD for 3 days before clolsing and may be 6 days if mailed and not emailed.
- The CD can change after that first draft CD with in limits.
With these changes and others you can imagine that you need to talk to your local trusted REALTOR and Lender to get answers now on how this could impact your purchase or sale of Franklin Real Estate after October 2015.
The Grumbles Team's Mike Grumbles is Your Relocation Engineer in Franklin, Tennessee 615-587-5843.
EXIT Realty of the South | 1227 Lakeview Dr. Suite 1 | Franklin | TN | 37067 | 615.550.5555 Each EXIT Office Independently Owned and Operated