Big changes coming to your Mortgage forms and disclosures

As a loan officer we have been in trainings and meetings about these changes since before the summertime.  And we are so excited this is here, ok not really and not even a little bit. BUT the new TRID requirements are here and they are here to stay, and we have to deal with them. Your Realtor will want to make sure to get a couple extra days for closing, and changes to your loan wont’ be as easy to make at the last minute without adding a few more days to your closing date.      Please feel free to reach out to me and I will get you all up to date and things to understand with these changes.   It’s all to provide a clearer explanation to the borrower, when it’s all said and done.

Three days before you seal the deal on the purchase of your new home, your lender is required to provide you with a Closing Disclosure. It looks similar to the Loan Estimate you were given 3 days after applying for a mortgage.

The Closing Disclosure gives you a thorough breakdown of your home loan and the terms that come with it.

There are 5 pages:

Page 1 summarizes the characteristics of your loan, including the amount, interest rate, monthly payment and how much money you’ll need to complete the transaction (called the “cash to close”).

Page 2 itemizes each cost related to the loan.

NEW TRID disclosure

Page 3 includes a table comparing the estimated closing costs listed on the Loan Estimate to the final costs. This gives you the opportunity to review what has changed since you applied for your loan. The page also includes a summary of the transactions that will take place to transfer ownership of the home from the seller to you.

Page 4 has more details about your loan. It indicates whether your loan may be assumed by a future buyer, if your loan has a negative amortization feature and whether your lender accepts partial payments. You’ll also learn about the late payment fee and whether your loan has an escrow account.

Page 5 provides information about how much the home will cost you over the life of your loan, additional disclosures related to your contract and contact information for the parties involved in the transaction. If you agree to accept the mortgage, then you’ll sign the bottom of this page.

There are restrictions on how much the closing costs included on your Closing Disclosure can deviate from what you were projected to pay on the Loan Estimate. The Consumer Financial Protection Bureau says lenders are prohibited from imposing higher fees unless there is a legitimate reason.

Use the 3 business days between the time you receive your Closing Disclosure and your scheduled closing day to scrutinize every cost and detail. Reach out to your loan officer to ask questions and clear up any concerns

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All page content by Bruce McLaughlin Eagle Home Mortgage 1029 East Main Puyallup WA 98372 NMLS 70081 253-651-5755 Contact me directly for any questions