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What Will The TRID Loan Estimate Tell Me?
The Loan Estimate documents the essential facts and terms of an approved real estate loan. It includes:
- loan terms
- projected payments and loan costs
- cash and costs at closing time
- the services for which you CAN and CANNOT shop in relation to the loan
- summary information with which to compare this loan to others
and other important details such as appraisal, insurance, late payment, refinancing, loan assumption policy and whether this lender intends to service this loan.
The Loan Disclosure is a dynamic form; it will include information that IS related to YOUR loan and may leave out information that is NOT so forms from different lenders or for different loans may not look identical.
Can Creditors Collect Information Beyond The 6 Required Pieces?
In addition to the required pieces:
- Name
- Income
- Social Security Number
- Property Address
- Estimated Property Value
- Mortgage Amount Sought
a creditor may collect whatever additional information they deem necessary.
However, as soon as you have provided the 6 required pieces, the creditor has 3 business days to provide a Loan Estimate for approved loans.
6 Selling Mistakes
If you’re selling, don’t do these things – take some notes from the video!
1. Don’t Sell Before The House Is Ready.
If it doesn’t present well, it won’t sell well.
2. Don’t Over-Improve
People buy houses in neighborhoods.
If yours is so “improved” that it sticks out you’re hurting your chances at selling.
3. Hire Wrong
Make your agent choice for business reasons.
Personal relationships matter, but experience and expertise will determine financial success in your sale.
4. Don’t Hide Anything
Covering up or ‘failing to mention’ real problems doesn’t work.
State disclosure laws are strict and you can be sued after the sale for anything that should have been made clear.
5. Don’t Rush
You should know about your mortgage, including pre-payment penalties your market conditions and trends and your options for your next home before jumping on the market.
6. Don’t Get Too Emotional
Your attachment to your house and your own financial needs
don’t really matter in the transaction.
If you can’t set them aside the sale won’t go as you’d like it to.
Remember – it was your home but to the buyer it’s as a house.
Understanding Your Loan: Additional Information Can Be Important
Page 4 of your Closing Disclosure is important. It is NOT just standardized form information that is identical for every loan.
Review these terms:
- Assumption: can this loan be transferred to another person if you sell or transfer the property?
- Demand: can the lender require early repayment of the loan?
- Late Payments: what penalty, after what period, applies?
- Negative Amortization: does this loan schedule or allow payments that do NOT fully cover the interest due, resulting in increased loan principal?
- Partial Payments: what is THIS lender’s policy?
You should also review Escrow Account details to understand whether you will pay additional property costs via regular Escrow Account payments or handle them yourself directly.
What Do I Get At Closing?
For most real estate loans, you will receive a Closing Disclosure 3 business days before loan consummation –
which frequently happens at the closing meeting.
At the meeting itself you should receive a copy of your Mortgage Note –
your obligation to repay-
your Mortgage or Deed of Trust
the binding Sales Contract
and – in some states – you may get the keys to your new home.
Understanding Your Loan: Cash And Transaction Summaries
Page 3 of your Closing Disclosure will compare cash requirements from your Loan Estimate to your actual final charges. If “Did this change?” is “YES” notes for changed sections should be provided.
The bottom line final “Cash to Close” is the money you will need in-hand in three business days.
If your transaction has a Seller the summary table will show a line by line comparison of Borrower to Seller transaction details.
If there is no Seller you may see a Payoffs and Payments table instead.
Review the summary tables to understand the transaction and your financial commitments at loan consummation.