After nearly two months of originating TRID loans under the new regulations, one thing is very clear. Buyers must understand and respect the timing and deadlines involved.
Here are some key dates buyers need to keep in mind:
- Application Date. Submitting your mortgage application as early as possible in the home-buying process is more important than ever. Also important is gathering the documents required to apply.
- Closing Date. This is the date agreed upon by the buyer and seller for closing. When working with your lender, make sure your loan is clear to close (no other conditions required) at least one week before this date to ensure a smooth closing.
- Appraisal Received Date. The lender will let you know when your appraisal has been received and reviewed by Underwriting. You will receive a copy of this for your records. It is important for buyers to know that the appraisal has been received and reviewed, to avoid any delays.
- Clear to Close Date. This is the date that you, as the buyer, are looking for to confirm the Closing Date agreed upon. This means your lender has approved and cleared all conditions on your loan, and you are now ready to proceed toward the closing process. Under TRID, the closing process now includes additional time for the preparation of the initial Closing Disclosure and its delivery to and acknowledgement from the buyer. (Once receipt is acknowledged, the three business-day clock starts.)
- Initial Closing Disclosure Due to Attorney Date. This is especially important if you are buying a foreclosure or HUD-owned home, as a longer period of review is required for these loans. Check with your attorney and agent on this.
To help ensure a smooth process, make sure your lender allows e-signatures on these new closing documents. (You’ll want to enroll in this feature upfront.) This is the easiest way to acknowledge your Closing Disclosure and meet your original closing date.
In summary: apply quickly, submit all required documentation and work with your lender to get your loan Clear to Close. Buyers should plan for some flexibility or have a “Plan B” if they need to push their closing a day or two.
Contact your Allen Tate Mortgage Consultant to smoothly navigate through this new process.
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