New Law May Affect Closings
Here comes the Truth-in-Lending/Real Estate Protection Act Integrated Disclosure Rule (TRID) effective date. What does that mean for the consumer and those working within the real estate industry? Starting with applications received on October 3rd of this year, the final closing costs on a home loan must be made available to a consumer purchasing or refinancing a home three business days before closing.
This means that all parties must do a much more judicious job of planning a purchase or refinance transaction. Want to go to closing quickly after signing a contract? The best avenue would be to make sure your application is fully pre-approved by your lender’s underwriters before you make an offer. This strategy also has the potential to make your offer more enticing to sellers because they know you are a serious buyer. It will also be important to make sure all issues are resolved early in the process.
Last minute changes to the contract are much more likely to cause a delay in the settlement date. It is all-important for everyone who is part of the process to work as a team to insure that the transaction flows smoothly without delays.
Contact us for an article explaining the full scope of the changes, including the new integrated disclosures.