All of my new buyers will receive a copy of this flyer in their Buyer packet (compliments of the wonderful Moore Team at Shelter Lending), but I thought it was worth sharing this very helpful information about the upcoming TRID changes and how it will impact the purchasing process.
Perhaps the piece we are all the most worried about are the new timing requirements, which have the potential to delay closings (a major problem if there are back-to-back closings involved!). The biggest change is that the loan can’t close until the Lender has sent the Borrower the final Closing Disclosure (CD), confirmed the Borrower has received the CD, AND then waited for the 3-day waiting period to pass.
Example: If closing is on a Friday, the Buyer’s “confirmation of receipt” must be received by 11:59pm on the prior Tuesday. If the CD changes, the 3-day clock may have to be restarted. This will cause many closings to be delayed.
Due to these increased timelines, my lenders are recommending an appraisal contingency of 25 days, financing contingency of 35 days, and closing at least 45 days out.
Key action items for the Buyer are:
- Submit a pre-approval application before making an offer to minimize mortgage processing delays
- Give the Sales Contract to the lender as soon as it is available
- Use e-mail to electronically sign the loan disclosures, including the LE, to expedite the process
- Give the Lender your “Intent to Proceed” as soon as possible after receiving the LE
- Pull together and deliver your requested loan docs to the lender during the first week of the process
- Confirm receipt of the CD immediately after receiving it to start the clock ticking on the 3-day waiting period
For more information about how these changes might affect your home purchase, please call or email me today!
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