TRID stands for Truth In Lending Disclosure. If you're buying a home after October 3rd, 2015, these guidelines will affect your purchase - whether you are purchasing a home in Madison, Wisconsin or elsewhere in the country. The idea behind TRID is to make documents - specifically the ones that have to do with your mortgage - more consumer friendly. This is the first major overhaul in decades, but your Real Estate Guy team at Keller Williams in Madison has had in depth training and will make your home purchase under these new guidelines seamless.
As a buyer, the best thing for you to do is meet with a lender before you start shopping for a home. Don't fill out one of those quick pre-approval loans online, actually MEET with them. Ask if the lender will pass your file through underwriting BEFORE a home is chosen - this is a step further than just a quick pre-approval. The underwriters will look at your credit and income history and clear up any questions they may have before you get started.
Make sure your lender is well training on the TRID procedures themselves! Choose a local lender with procedures in place for TRID and select the loan program and stick to it. If you are unsure of who to choose, we highly recommend the Joe Long Team at Waterstone Mortgage.
Why pre-approve early? Simply, to avoid any last minute changes. Prior to October 3rd, a lender could give you loan approval the day before closing. With TRID, this will no longer be an option. You will now need to see your final loan disclosure three business days prior to closing.
In addition, any last minute credits from the seller of the home you are purchasing will make the three business day clock start over. It is imperative to be sure your agent writes in plenty of time between offer and closing -- no less than 60 days is recommended. And prompt appraisals and inspections are necessary.
This may sound complicated to a new buyer, or even a 2nd or 3rd time buyer. The Real Estate Guy Team's buyer agents have been through multiple training sessions with both lenders and closing companies and their knowledge of TRID guidelines are second to none. If you are ready to buy a home, contact us and set up an appointment with one of our buyer agents! Using a knowledgeable Realtor will help avoid any pitfalls that could delay closing of your new home.
Start your home search with the Real Estate Guy Team today.