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 Thursday evening, Arlington. Let’s take a look back at today’s stories and a look forward to tomorrow’s event calendar. 🕗 News recap The following articles were published earlier today…

Last year, an attempt to broaden the Arlington police auditor’s access to police records quietly fizzled before reaching the public for discussion.

George Mason University’s new Fuse at Mason Square in Arlington, is poised to become a 345,000-square-foot collaborative and digital innovation space in the heart of the Rosslyn-Ballston Corridor. “As Mason expands in…

These tree care companies serve Arlington County and received Washington Consumers’ Checkbook’s top rating for quality (as reported by their customers in Checkbook’s surveys).

Award-winning drag queen Tara Hoot is bringing her Family Fun Story Time Brunch to Arlington at Freddie’s Beach Bar! Saturday April 6 at noon! Join Tara for songs, stories, puppets, bubbles and joy! It’s not just stories, it’s a SHOW that’s perfect for kids and kids at heart–fun for everyone! Plus a tasty brunch at Freddie’s! Click the link and make your reservations now! ❤️ 🫧 🌈

Submit your own Announcement here.

The Summer 2024 STEAM (Science/Technology/Engineering/Arts/Math) Fellowship application is now open! Apply by April 15 to be considered!

The STEAM Workforce Development Teacher Fellowship provides Arlington Public Schools (APS) high school, middle school, and elementary school teachers with opportunities to learn about workplace needs in STEAM-related fields and for them to use the experience to enhance student learning to match workplace expectations in a selected industry. STEAM Fellows participate in a three-week summer fellowship, receiving a $4,000 stipend upon completion.

Applicants planning to pursue a fellowship in the arts must demonstrate how they will build connections between the arts and science, technology, engineering, or mathematics.

Click the button to learn more, share, apply, and see the variety of fellowships completed in previous years.

Read More

Submit your own Announcement here.

Free Right-Sizing Workshop – How to Get Rid of Your…

Cody Chance and Dick Nathan of Long & Foster are hosting a free workshop at our office on Cherry Hill Rd. (formerly Lee Highway) on the topic of “down-sizing” Thursday, March 28 from 5:30-7:30. We have created a workbook with

Portofino Italian Wine Dinner, April 6, 6:30pm

Four course Italian dinner, paired with 2 wines each. The wines will be served “blind” and notes on each wine will be discussed. The event is coordinated with Elite Wine Importers and The Portofino Restaurant. The dinner is on Saturday,

×

Subscribe to our mailing list