If you’re in the middle of purchasing a home, there’s a good chance you’ve heard a couple of words thrown around that might seem new to you – TRID being one of them.
Essentially, TRID is a rule designed with consumers in mind; real estate, while exciting, can be a little puzzling when you throw in contractual documents and legal jargon. But with TRID, these things should be clearer to understand, and consumers should be given a longer period of time to read through documents before signing at the closing table.
So, what exactly is TRID?
TRID is the TILA/RESPA Integrated Disclosure Rule – and yes, it is an acronym out of acronyms. TILA is the Truth in Lending Act, and RESPA is the Real Estate Settlement Procedures Act.
This rule requires easier consumer disclosures for clients to read and to help the borrower determine whether they would like to move forward with the transaction. TRID also involves making sure that the Closing Disclosure is given early – at least three business days prior to the closing date. This way, if the consumers have any questions or concerns, the lender and / or real estate agent can help with any additional information.
Although TRID might sound like a scary legal issue, it’s actually one that benefits the consumer; because lenders are required to provide the disclosure agreement before closing, it helps empower sellers and buyers to understand the entire home buying process.
Check out Alliance’s Client Resource Guide to see the full breakdown of what the TRID rule looks like on a calendar.