New government regulations have made changes to closings and home mortgages.
These federal regulations are known as TRID, which is an acronym within an acronym — TILA-RESPA Integrated Disclosures. We’re going to see that these changes are going to cost time and money.
If you’re buying a home in the Raleigh area, read more about what changes these new regulations will bring and tips for avoiding costly mistakes during your own closing.
What Are These Changes, Exactly?
The Integrated Disclosures are replacing the Good Faith Estimate, the Truth-In-Lending, and the HUD-1 Settlement Statement for borrowers. For sellers, the Closing Disclosure and the HUD-1 have to be done by the attorneys.
There Are New Timelines for Closings
Once the loan has been completely approved, the lender now has to send the new Closing Disclosure directly to the borrower rather than the closing attorney.
The Closing Disclosure has to be delivered to the borrower 3 business days before closing (or 7 business days if delivered by mail). If there are any changes to the APR, a new Closing Disclosure has to be issued, taking up another 3 days (or 7).
We expect that we are going to have a lot of delays to real estate closings, which costs a lot of money.
Choosing the Right Lender is Crucial
With these new changes to closings and mortgages, it’s more important than ever to choose the right lender.
You need to choose a local lender that has in-house processing and underwriting, and now that TRID changes are here, you need e-signatures so that your Closing Disclosure doesn’t have to be delivered to you by mail. If you’re buying a home in the area, we can recommend great Raleigh area mortgage lenders to help you choose the right lender.
Want to learn more about TRID and what you may experience during closing? Watch my latest video about TRID below, which includes quick tips about avoiding costly closing delays.
Buying a Home in the Raleigh Area?
Now that new regulations have come to mortgages and real estate closings, you want to avoid costly delays in your own closing by choosing the right real estate team.
Linda Craft & Team, REALTORS® are your Raleigh real estate experts, and we can give you up-to-date information about these new changes and advise you about ways to make your home buying process smoother. We can even help you choose the right lender. Call us today at 919-235-0007 or email linda@lindacraft.com and we can get started.
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