3 Basic Things to Know About the New Mortgage Guidelines and How They Will Effect You.

1) The TRID Guidelines were created to help you, the consumer. 

Under the new guidelines the loan application process is streamlined and it requires lenders to provide a Loan Estimate which the buyer must approve in order for the lender to really get the process stated.  Once the buyer approves there is very little that can change as far as fees assessed to the buyer which will cut down on surprises when it is time for buyers to sign loan documents.

2) It is more important than ever to stick to the 17 day contingency periods outlined in the Residential Purchase Agreement.

Any and all negotiations, credits to the buyer for repairs, credits for buyer closing costs or any changes to the purchase price should be settled upon within the 17 day contingency period. Any material or monetary changes to the purchase contract have to be reviewed by underwriting and should be submitted to the underwriter in advance. Any last minute changes you make can and most likely will cause a delay in closing

3) 45 is the new 30

Because there is now more required disclosure on the lending side and added review periods, a 45 day escrow will be the new industry standard. Be sure and plan your real estate moves accordingly. 

Overall the TRID Guidelines are in place to better the mortgage and real estate industry.  Though it may take some time for professionals and consumers alike to get used to the new procedures, ultimately this is a good thing for us all. 

If you have any questions regarding the TRID Guidelines or anything else real estate related, please contact me at (949)375-9981. Thank you