TRID Blog

What is TRID?

TRID translates to TILA-RESPA Integrated Disclosure and it went into effect on Oct. 3 of 2015. Simply put, TRID combines the Good Faith Estimate and Early Truth-in-Lending disclosure into the loan estimate and the HUD-1 and Final TIL into the closing disclosure.

Why does TRID matter?

TRID is one of the largest obstacles to purchasing, thanks to its mandatory waiting periods and lenders lacking experience with the process. Buyers who pick inexperienced lenders risk additional delays in rate-lock extensions and/or missed deadlines on purchase contracts.

Further complicating matters is that each lender interprets TRID in their own different way. Finding a lender who has the most favorable interpretations is crucial.

How do I find the right lender?

Find a lender that will pre-approve and not just pre-qualify. A pre-approval is actually having your loan submitted, underwritten and approved with conditions as a property to be named later. Pre-approval saves about two days.

Also, select a lender who issues the CD before being clear to close. A lot of lenders will only issue CDs after your loan is clear to close.

The CD requires a three-day wait period before closing. So if you receive it after you are clear, then you are sitting around for three days doing nothing.

On the other hand, if the lender issues it before the clear to close, you can begin your wait period working on other conditions with the lender. This saves buyers three days.

From: SF Gate

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