Know Before You Owe – Tips For a Smooth Mortgage Process


Know Before You Owe – Tips For a Smooth Mortgage Process

Beginning on October 3, the CFPB’s new “Know Before You Owe” rule, also known as TRID, went into effect. The new regulations will result in some changes to the way real young coupleestate transactions are processed. The updates include new forms and timelines that are intended to make the process more transparent and easier to understand. Recently, the Mortgage Bankers Association released a set of guidelines to help educate everyone involved.

As a borrower, what can you do to prepare for a new home purchase? What can you expect? What are your responsibilities? How do you avoid delays? The tips listed below offer some insight:

  • Get financial details sorted out first by obtaining a pre-approval from your lender! It’s helpful to secure financing early – even before you officially begin the search for your dream home.
  • Read your Loan Estimate (LE) carefully early on in the process so any questions can be addressed in a timely manner. You have at least seven days to review paperwork between the time you receive the LE and the time you close.
  • Do not make any major financial decisions or purchases that might impact your loan or closing. Inform your loan advisor immediately of any changes that do occur, including a change in employment status.
  • Order reports and home inspections as soon as you know they are required so that any contingencies can be removed quickly.
  • Schedule a final walk through of the property before the Closing Disclosure (CD) is issued – at least 3 days before closing.
  • Avoid last minute changes to the loan. Certain changes to the APR or loan product after you receive the CD will trigger an additional three business day waiting period.

Although the new disclosure rules could potentially add additional time to the process, delays are avoidable if you have a clear understanding of the process and what is expected of you. Your loan advisor will guide you through each step.

Contact a loan advisor today to start a conversation about your homeownership goals.

By Amy Malloy