Special TRID edition of Borrower Do's and Don'ts
By:
Ted Rood
•
We've previously explored homebuyers' "Do's and Don'ts" and uncovered some vital tips that help or hinder the home buying process. In today's special edition, we examine hints for successfully coping with TRID (the new TILA-RESPA Integrated Disclosures rules that go into effect this weekend). As always, the "Do's" contain very real helpful points to avoid closing delays, while the "Don'ts" offer a somewhat satirical look at potential (but hopefully improbable) real life situations that will complicate or delay closings, particularly given TRID's stringent new requirements.
| TRID Do: | Discuss your loan options in detail with your lender, and apply once you have decided which loan best suits your needs. |
| TRID Don't: | Ask your lender for a LE (Loan Estimate) on a 30 year fixed loan, then opt for a 15 year 5 days before your scheduled closing. |
| TRID Do: | Make sure your lender fully understands your income and assets prior to your formal loan application. |
| TRID Don't: | "Forget" to tell your lender about your back child support garnishment until he asks you, in hopes it will be overlooked. |
| TRID Do: | Compare title companies' fees/services before telling your lender which one you prefer to use. |
| TRID Don't: | Select a title company from the lender's provider list, then switch to another the week of your closing. |
| TRID Do: | Provide your lender with email addresses for all borrowers, then monitor them daily to avoid lengthy closing delays. |
| TRID Don't: | Give your loan officer an email address you last used 12 years ago and don't know the password to. |
| TRID Do: | Allow plenty of time for your loan's processing and closing in lieu of TRID's strict timing restrictions. |
| TRID Don't: | Start your loan, then leave for a camping trip "off the grid" until the day before closing. |
| TRID Do: | Offer to supply your income documentation to your lender prior to the LE to ensure he correctly calculates your income. |
| TRID Don't: | Tell your lender "you can't ask for my tax returns yet" before he supplies the LE, then, once he does, mention you haven't filed in years. |
| TRID Do: | Ask your lender to compare several loan programs before applying to examine your options. |
| TRID Don't: | Ask your lender for 3 simultaneous LEs on different programs for the same transaction. |
| TRID Do: | Know that your lender is required to provide the Closing Disclosure (CD) 3 business days prior to closing. |
| TRID Don't: | Schedule your closing for a Monday, then decide to take a long weekend, calling title company Monday to reset the closing for Tuesday. |
| TRID Do: | Review your CD as soon as you receive it via email, discussing any errors or questions with your lender. |
| TRID Don't: | Forget to check your email for the CD until the day before closing, then tell your lender you can't reschedule due to a hectic schedule. |
| TRID Do: | Realize longer lock periods are necessary to allow for TRID mandated disclosure delivery before closing. |
| TRID Don't: | Insist that you should close in 8 days "because I heard a lender promise that on the radio last week." |