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Who is afraid of TRID?
Will it delay my closing?
The answer is NO for just about everybody.
When the Know Before You Owe mortgage disclosure rule becomes
effective, lenders must
give you the new, easy to read disclosures about your loan three
business days before closing.
Think of it as a lemon law to check and review
before the last minute.
This gives you time to review the terms of the deal before you
get to the closing table.
Many things can change in the days leading up to closing. Most
changes will not require
your lender to give you three more business days to review the
new terms before closing.
The new rule allows for ordinary changes that do not alter the
basic terms of the deal.
Only THREE changes require a new 3–day
review:
1. The APR (annual
percentage rate) increases by
1/4 of a percent for adjustable loans.1
A decrease in APR will not require a new 3-day review if it is
based on changes to interest rate or other fees.
2. A prepayment penalty is
added, making it expensive to
get out of the mortgage to sell or refinance lower.
3. The basic loan product
changes,
Such changing from a thirty year fixed rate to adjustable rate
or say a fixed to an interest only.
These would be big changes to the loan long
term.
1 Lenders have been
required to provide a 3-day
review for these changes in APR since 2009.
NO OTHER changes require
a new 3–day review:
There has been much misinformation and mistaken
commentary around this point. Any other changes
in the days leading up to closing do not require a
new 3-day review, although the lender will still have
to provide an updated disclosure.
Sometimes Chicken Little Yelling that the Sky is Falling
requires cool heads, planning, organization and not a
foil chicken helmet
The following situations do not require a new 3-day review:
Unexpected discoveries on a walk-through
such as a broken refrigerator or a missing stove,
even if they require seller credits to the buyer if nominal.
Most changes to payments made at closing,
including the amount of the real estate Commissions, taxes,
pro-rations for utilities and amounts paid into escrow impounds.
Typos found at the closing table.
Spelling errors, okay that's pretty common sense
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