Dear Kathe,
You have previously written about the new TRID lending regulations. How do they impact me, a prospective home buyer?
The theory behind the new TRID regulations is to protect the mortgage consumer in a real estate transaction by increasing disclosure and privacy requirements. The reality of these regulations is that while they may add slightly more protection, they will also increase the burdens on everyone including you, the borrower. All parties to a real estate transaction that involves a mortgage will need to be more patient – it will become more difficult to close in less than 60 days and all parties need to anticipate that, while lenders adjust to the required processes, deadlines (including closing dates) might be delayed. Here are the new items on your to do list if you are a buyer in a transaction with a mortgage.
You will need to make sure that your home inspector gives you a bill for your home inspection and that you get it to your lender as soon as the inspection has been completed. The lender now has the responsibility of correctly disclosing every cost involved in your purchase and the inspector bill is their proof of those costs.
You will need to arrange for your homeowners insurance right away and get your lender your insurance agent’s contact information promptly – no more last minute calls to your agent to get coverage. Again, your lender must have this information to comply with TRID required disclosure timelines – you do not want to delay your closing because you waited too long to get your insurance.
The privacy laws do not allow your lender to supply the closing statement to anyone other than you. If you want your agent or your closing company to be able to double check the numbers to make sure you are being charged the correct amount, you will need to be the one chasing down your lender to get this and then providing a copy to your agent and closing officer for review.
It will be a period of learning and adjustment for all of us. Realtors should have a process in place to help get their buyers smoothly through these new hurdles.