Revised Mortgage Disclosure Documents

Mortgage Application

Mortgage disclosure documents have gone through tremendous change recently with the new TRID forms. There have always been several disclosure forms when applying for a mortgage, and it could be overwhelming. Many of these forms were mandated by various laws over time. In some cases, they overlapped, disclosing essentially the same thing, but in different ways, and could be confusing. The newly revised mortgage disclosure documents have addresses some of this.

The New Loan Estimate Disclosure

The new TRID loan estimate document combines items from the old Truth-in-Lending (TIL) and Good Faith Estimate (GFE) disclosures. This document gives a better understanding of the features of a¬†mortgage, fees charged, estimated monthly payments, and any risks that come with it. This can be helpful when comparing specific loan alternatives either from one mortgage company or from multiple lenders (because when getting a mortgage loan, it’s good to shop around). Lenders will generate this document within 3 business days of your application submission.

Find your Place

The New Closing Disclosure (CD) Form

The closing disclosure (CD) form includes the particular costs involved with the mortgage. It combines information normally detailed in the settlement form and Truth-in-Lending disclosure. There are ordinarily many different costs. To organize the figures, they are lumped into specific categories such as origination charges, recording fees, and escrow deposits. This document is generated later in the transaction Рno later than 3 business days before closing.

Revised Mortgage Disclosure Documents

These forms launched October 3, 2015, but this change does not apply to reverse mortgages and home equity loans. No matter which disclosures apply to you, you should always touch base with your mortgage consultant if you have questions. The information on the revised mortgage disclosure documents shared here is intended only as an overview and does not outline every aspect of the recent changes.

Time to talk to a REALTOR?

Check out this article next

Benefits Of 1031 Tax Deferred Exchanges In San Jose CA

Benefits Of 1031 Tax Deferred Exchanges In San Jose CA

A 1031 exchange is a method for postponing taxes when selling one piece of real property and buying another. Properties used for business or investment…

Read Article
About the Author
Seb Frey helps long-time Bay Area homeowners make their next move easily the next one yet. If you're looking for a minimum of hassle, maximum net cash on sale, and certain results, contact Seb today.