What Is TRID?

piggybankTRID 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.

Underwater Home Upgrades

 The mortgage for your house is underwater and you need to put it up for sale. What are some the most   economical home improvements you can make to increase the value without going over board?

1. Increase curb appeal with simple cosmetic changes. A little paint, general cleaning, sprucing up the yard, or planting some flowers go a long way.

2. Create more space economically. Finish off or redo the basement or convert a garage to create more living area.

3. Green is Good. Increase the home’s efficiency with energy efficient lighting, adding solar panels, wrapping pipes, upgrading insulation or converting to a tankless water heater.

4. Expand the interior. If you have a variety or small rooms, combine rooms by knocking out shared walls to create a larger, more useful space, and the feel of a much greater, modern expanse.

5. Use Every Inch. Take a good look around and see if there are any areas that are wasted space that could benefit from built ins [under stair closets, corners between cabinets that are not being used for anything, garage walls, etc.]. Maximum storage is always a great selling point.

What It Helps To Know About Interest Rates, Points, And The “Mysterious” APR

When you get a mortgage, there are three important terms for you to remember.

  • Interest      Rates
  • Points
  • APR

I’ve combined these three terms here because they’re related, and you’ll understand them better if I explain them together.

Interest Rate:  “Interest Rates” are the price that Lenders charge for the use of their money.  So, when interest rates are high, it’s because Lenders are charging you more to use their money right now.

Again, it’s a trade-off between now and later.  Lenders are only going to give you so much money to use over the next 15 to 30 years (the life of your mortgage).  They work backwards from that figure using interest rates.

If you have a higher interest rate, you have less money to spend now.  If you have a lower interest rate, you have more money to spend now.

Points:  I want to tell you about a funny word – it’s one of those words that doesn’t mean what you might think it means when you hear it.  (Like when the waiter at the restaurant asks you if you would like your “check,” and somehow you know that what they really mean is your bill, but you say, “Oh yes, thank you.”)

When you hear the word “points,” what do you think of?  Maybe points in a football game?  Maybe a test score?

Well, some smart person in the mortgage industry started using the word “points” to mean 1% of your entire loan amount, that you get to pay up front, as a fee for certain things.

So let’s say your mortgage is for $200,000.  One “point” would mean $2,000.

Now I’ll tell you about the third term and how it relates to the first two.

APR:  “APR” stands for “Annual Percentage Rate.”  That sounds friendly, too, doesn’t it?

The APR is what you get when you add the interest rate, the points, and all of the other fees together and then calculate what the loan will cost you each year, based on all of the fees added together.

an excerpt from by referral only


4 Ways to Beat the Stress of Buying a Home

1.  Begin with the end in mind. Have an ultimate scenario of where you’re trying to be.  What will life be like when you get there?  How will it be better than where you are now?  Dwell on that picture and write it out, fill up at least a page about how it feels in the new place.  This is imperative. Having the goal in front of you at all times energizes you to achieve it, in spite of setbacks and frustrations.  Emotions will run high and you need an anchor.  You must focus on that future goal when anxiety threatens to get the better of you.

2.   Be flexible. In your monetary calculations, overestimate by a thousand dollars.  In this market, anything can happen between contract acceptance and closing.  It could be the inspections reveal areas of concern that the seller is unwilling to fix or the repair costs are higher than the amount limited in the contract. Or the interest rate changes which affects the necessary down payment and closing costs you’ll need to come up with.  As your real estate team, we’ll strive to tie up loose ends as quickly as possible, but remember there is no perfect world.  Most buyers feel a bit overwhelmed when taking on a new mortgage and the responsibilities of a new home. We’ve seen many buyers get angry when it seems like the cost just keeps going up.  Anger is caused when reality doesn’t match up with the expectations you had in your mind.  If you anticipate this happening in advance, you won’t get angry.  In fact, it’ll probably go better than you expected.

3.  Trust in the process. There’s just so much to do, it’s easy to panic.  You wonder if it will ever work out.  In fact, when we bought our house, we couldn’t eat for a day, we felt so sick to our stomachs!  You think you’re taking a big chance, but the truth is you’re giving yourself a big chance. Even though you can’t see every step of the way, as you move towards your goals, the way opens up.  We know that you haven’t moved in a long time and it’s a major upheaval in your life.  But we’ve been there many times before, and we’ll be looking out for you.  Trust that we know the way to get you there.

4.  Get knowledge. One thing you’ll probably feel during this transition time is being out of control.  It feels like everyone else has taken over your life.  The seller, your Lender, the appraiser, the inspectors, all have the power to say yes or no to your moving plans. We’ll try our best to let you know ahead of time what your expenses will be, and what the unknowns are.  We’ll tie down the loose ends as soon as possible.  We’ll try to get your loan approved within a reasonable time frame.  We’ll educate you as best we can and let you in “behind the scenes” so you won’t ever feel stupid or out of control.

an exerpt from by referral only 

The Three Things That Scare You Most About Buying A House

Buying a home must up there with public speaking and the remake of The Exorcist for frightful experiences, but many of us will buy a home, speak publicly and watch that movie again and again in our lifetimes. By giving you a few of the “behind-the-scenes” secrets, we hope to help you deal with the three things that scare you most about buying a home.

The Cost 

The greatest fear that people have about buying a home is being able to afford it.  This is what keeps us awake at night – calculating and recalculating how many lunches we have to pack instead of going out with the gang, to be able to make the mortgage payment. The behind-the-scenes secret to dealing with this fear is working with a great Lender and getting pre-approved BEFORE you start looking at homes, and being realistic about what you’re willing and able to spend. The Lender will give you a range of loan options available and if asked, will give you a realistic projection of what you can REALLY afford, considering your budget and lifestyle.

The Commitment

Women like to stereotype men as having a fear of commitment – but when it comes to buying a home, we’re all susceptible.  Buying a home usually means committing money and time (at least a year – usually more like five years) to being in one spot.If you’re just finishing a degree or training, or you’re not sure that you’ll be in the same position for awhile, you may consider waiting until your life is a little more stable. The behind-the-scenes secret to dealing with the fear of commitment is in buying a home that will resell easily – that has features that other people will want.  In addition, you can get a two-step mortgage that allows you to pay a fixed rate for a certain period of time, and a flexible rate later on – so you can get out of the loan easily after the first step.

The People

Who can you trust in this home-buying process?  This is a big investment we’re talking about.  And it seems that everyone is out to make as much money as possible OFF of you!  There are sellers, real estate consultants, lenders, builders, movers, and attorneys, all of whom may be strangers, and have a vested interest when you buy a home.  It’s easy to be afraid they’ll take you to the cleaners. The behind-the-scenes secret is to check their references.  Really.  Many lenders and real estate consultants operate on a “By Referral Only” basis – in which they ask clients to refer them to others they know are buying a home.  Those who offer “lifetime relationships” and other services (like free reports and seminars on buying or selling homes) are already striving to meet your needs. In reality, they are NOT all out to get you – because in the long run, the BEST business strategy is to make sure that you get what you need and want in a home.

exerpt from By Referral Only