Many of us have gone through the process of securing a mortgage and closing on a home. We can all safely say that the from start to end, the process can be stressful and often confusing. However, real estate professionals have been taking meticulous steps to make the overall process smoother and easier. In 2013, the Consumer Financial Protection Bureau has released a new rule called the Truth in Lending Act (TILA), now known as the TILA- RESPA Integrated Disclosure Rule (TRID). Orlando closing agent, Real Estate Closing Solutions, would like to share what this is and how it can help your home-buying process.

 

  • Streamlining the Application Process: The most distinct change is the consolidation and development of new disclosure documents. The original “Truth in Lending” and “Good Faith Estimate” documents are replaced with one “Loan Estimate.” Moreover, the new rules make standardized items of the loan application more clear. Six factors go into the borrower’s information, but borrowers should still be prepared to provide additional documents.
  • Empowering Informed Decision-Making: These new rules began on applications that were submitted on or after October 3, 2015. However, the changes will empower many borrowers in the future to make detailed and informed decisions, such as by giving information on loan terms, estimated cost, and more within a single document. Furthermore, the new rules give borrowers more time by allowing them to thoroughly review and comprehend the documents.
  • Preventing Surprises at Closing: The most appreciable benefit from TRID is that borrowers will close on their property with a better understanding of the expectations. Not only does it require closing disclosure documents to be shared three days before closing with borrowers, but it also necessitates a three-day waiting period for any revisions made.

 

Simply stated, the new TRID offers a more detailed and well-defined blueprint for consumers who are building, purchasing, or refinancing their homes. This benefits everyone in the mortgage industry as it provides set standards. Real Estate Closing Solutions is an Orlando closing agent that works diligently with our clients to ensure an easy and secure home-buying process. For more information, call us at 407-615-8550 for our Dr. Phillips office, or 407-440-5025 for our N. Orange Avenue office.