TRID is the TILA/RESPA Integrated Disclosure Rule. [TILA is the Truth in Lending Act and RESPS is the Real Estate Procedures Act.] Basically, this is a Know Before You Owe rule, and is designed to help home owners understand the terms for their home financing transaction.
There are new forms and rules that now apply to most mortgages in order to give better consumer understanding of short term and long term lending costs and to avoid last minute surprises at the closing table.
Here are the items you will need to gather to make your mortgage application process go smoothly for a purchase:
Copy of drivers’ licenses
Copies of 2013 and 2014 W-25
Your most recent one month of paystubs from all employers that are listed on your application
Complete copies of 2013 and 2014 Federal tax returns
Your most recent two months of complete bank statements for all asset accounts
Copy of the executed Offer and/or Purchase and Sale agreement, whichever is available at the time of application
Complete real estate agent contact information
Mortgage statement, tax bill, insurance binder referencing the premium amount and verification of home owner’s association fee, if applicable, for all properties owned
If this is a condominium purchase, provide the homeowner association contact information
For Refinancing, the same financial documentation is required, along with the person who will need to be contacted to set up the appraisal along with their contact phone number.
The mortgage process will take longer than it has previously, as documentation has to be sent and received by the borrower on a set time schedule in order them to be able to review documents in advance. The timing parameters have to be strictly adhered to by all the players in the mortgage process, so there are no opportunities for last minute expenses to pop up or for closing dates to change other than what has been scheduled. The better prepared borrowers are, the smoother the transaction will flow, and the happier they will be.
