Join Club

Ask Will: How a New Real Estate Rule Will Impact Buyers

Ask Will banner

This regularly-scheduled sponsored Q&A  column is written by Will Wiard, Arlington-based real estate broker, voted one of Washington’s Best Realtors of 2015 by Washingtonian. Please submit your questions via email.

Q: I’m in the process of applying for a loan and heard there will be changes coming to the process in the next few weeks. What is the TRID and how will it impact me as a buyer?

A: TRID, known as the TILA-RESPA Integrated Disclosure (TRID) Rule or Integrated Mortgage Disclosure Rule, goes into effect Oct. 1, 2015, and will apply to all new loan applications. This new rule will benefit the buyer when closing by allowing them more time to review their closing documents and make sure everything is correct and up to date. If you currently have a closing date on a home, the new rule will not change anything for your transaction. However, if you are just starting the buying process the new rule will apply to you.

So, how will the new rules change the process for buyers just entering the market? Under TRID, a home purchase will no longer include the HUD form — it will now be called Closing Disclosures (CD), which is a completely different format and clearly lays out all the fees and loan information. The new rule also gives the buyer at least three days to review the closing documents prior to closing, compared to the current one day or, in some cases, just a few hours before closing.

Additionally, the lender will now be responsible for drafting and delivering the CD rather than the title company. By taking on this responsibility, the lender may be held liable for not delivering documents on time or issuing incorrect fees. This part of the new rule is a major change to the process for real estate professionals and will directly affect the lending and settlement process. As some roles are shifted from the title company to the lender there may be some growing pains.

Given the new guidelines, here are a few tips for buyers:

Lock your interest rate.

Make sure you are locked into your interest rate for a longer period of time, if at all possible. Because of the new rules, closings could be delayed at least initially, so make sure to speak with your lender about the best way to protect yourself from delays with a locked rate.

Build in more time for back-to-back closings.

If you are planning to sell a home and purchase a new one successively, keep in mind things may take longer on both sides. Work in a few extra days on both ends to be sure you have enough time to iron out any situations that may arise.

Consider the 3-day rule.

With the new rule, processing any changes to the following will require additional days to close:

  1. Changing the loan amount
  2. Any special credits paid outside of closing
  3. Changes to the property type

 

In short, while the new rule may help buyers better understand the loan documents, shifting the loan paperwork to the lender is a major change in the process, which means it could take longer to close.

Thank you for this week’s question. Please keep them coming to [email protected]. This is also a great place to reach me for anyone looking to buy or sell a home in the Arlington area.

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

Recent Stories

Good Wednesday evening, Arlington. Today we published articles that were read a total of 7696 times… so far. 📈 Top stories The following are the most-read articles for today —…

Arlington is poised to take a proverbial weed whacker to commercial properties with overgrown lawns and all properties with obstructive vegetation. Last month, a proposal to change the ordinance pertaining…

Adoptable Pet of the Week: Koda

Meet the beautiful Koda, a glass half full kinda dog who searching for his forever home.

It appears as if Courthouse’s newest date night spot won’t be open for Valentine’s Day. The opening for the hotly anticipated Taco Bell Cantina at 2039 Wilson Blvd has been…

Let the Arlingtones surprise your friend or sweetie this Valentine’s Day with a barbershop quartet singing love songs in four part a cappella harmony! Choose from a small selection of songs in our repertoire to surprise your special someone.

$75 for two songs delivered to a place of your choice by a live, in-person quartet. Includes a classy tin of chocolates, fresh red rose and personalized card. Small mileage surcharge for >5 miles outside Arlington VA.

$30 Facetime/Skype valentine- two songs delivered ‘live’ via Facetime or Skype at an agreed-on time.

$20 virtual valentine- two pre-recorded quartet songs delivered via email with a personalized message.

Read More

Submit your own Announcement here.

Have you noticed a striking sculpture at Monroe Street and Wilson Boulevard? It’s the Museum of Contemporary Art Arlington’s newest installation, Make Your Mark, by Arlington artist, Adam Henry. This sculpture celebrates MoCA Arlington’s rebranding and brings the museum’s energy outdoors.

On February 11, come inside when the museum’s galleries reopen with two new exhibitions: Rebecca Rivas Rogers: Grey View and Crisis of Image.

Grey View, in the Wyatt Resident Artist Gallery, is an homage to “gray” and a snapshot of the artist’s process. Consisting of photographs, collage, and a site-specific installation, this show is an outgrowth of Rivas-Rogers’ visual investigations into places you see on your way to somewhere else.

On the main level, Crisis of Image features artists who seek equity in today’s saturated visual world by developing new methods related to the production of images.

Read More

Submit your own Announcement here.

Valentine Pop-Up at George Mason University

Valentine gifts for someone special or for yourself are here at George Mason University from noon -4pm on February 14, 2023. Satisfy your sweet tooth with Kingsbury Chocolates, find a handmade bag from Karina Gaull, pick up treats from Village

Standup Comedy Showcase Starring Matt Ruby (Comedy Central)

Dead Horse Comedy Productions brings together top comedians from the DMV and beyond for a live standup comedy show!

Matt Ruby, Headliner

Matt Ruby is a comedian, writer, and filmmaker from New York City. His comedy has been filmed by

×

Subscribe to our mailing list