As you probably know, all mortgage applications submitted on or after October 3rd fall under the new TRID rules. But what exactly does this entail?
Under the new rules, borrowers will receive a Loan Estimate including information such as the interest rate and monthly payment within three business days of applying for a loan. If borrowers apply to several different lenders, the offers will be displayed in comprehensive formats so that borrowers can compare terms. This will allow borrowers to easily compare and see how much each loan will cost over the first five years.
Additionally, lenders must give borrowers a Closing Disclosure detailing the final loan terms and summarizing the transaction. Borrowers will also be able to compare the disclosure with their original Loan Estimate to see any changes that may have been made.