New federal regulation, implemented Oct 3, 2015 is designed to slow down the process of buying a home with a mortgage so that it can be completed in a more thorough manner. In addition, new “TRID” (TILA-RESPA Integrated Disclosure) rules are an attempt to better explain closing costs to a buyer and make sure the lender does a more in-depth credit, income and asset review before allowing a buyer to close on the purchase of a home.
Sellers, what does this mean to you? Avoid delays at all costs!
- To avoid wasting a lot of time on buyers who are not qualified to buy, you might want to request they provide a letter from their lender that the lender has indeed, reviewed their income, asset and credit documentation before you entertain an offer.
- Loan closing costs will increase so you may be asked to help since this narrows the field of buyers with ready assets.
- Have a copy of your survey available for your Realtor ® to review before listing your home.
- Make your Realtor ® and title company aware if you will not be available during the selling process or at closing. This can cause major delays in closing.
- Make sure your Realtor ®and the title company know immediately of any divorce, death, bankruptcy, tax liens or lawsuits that you’ve experienced since buying the home.
- Respond to the title company immediately upon their request for payoffs, surveys or other documentation.
- Make sure all repairs, receipts, HOA documents, Powers of Attorney, etc. are completed and provided to your Realtor® and title company a minimum of 2 weeks prior to closing.
- All lenders, attorneys and title companies had to re-tool their technology in a very short period of time so initially, there will be delays simply due to systems integration errors.
- The HUD1 Settlement Statement which contained the final accounting of all numbers for both the buyer and seller, NO LONGER EXISTS. It has been replaced with a Closing Disclosure.
- Closings will take longer (expect at least 45 days). Once the loan is through underwriting, all work/bills submitted, approved by all closers and attorneys, the buyer will then receive, review and sign-off on the Closing Disclosure. Sellers must wait another 3-6 business days to actually sign any closing documents and fund. This is the buyer’s “cooling off” period to make sure he/she still wants to purchase the home.
Juli Coen, V.P. Sr. Mortgage Lender and Military Specialist
NMLS#327707
Iberiabank Mortgage
13750 San Pedro, Ste 620
San Antonio TX 78232
210-845-4695
Juli.coen@iberiabankmortgage.com
Reprinted by permission from Juli Coen, October 10, 2015