Defining the Scary Words in Real Estate – TRID Style
As you go through the journey of purchasing a home, you might come across jargon and silly-sounding words that don’t necessarily make any sense to you.
One of those terms you’ve probably ran across – TRID.
Yeah, that sounds pretty weird. But what is it, exactly? It’s important, as a buyer or a seller, to fully understand these terms so you feel confident throughout the transaction.
So, let’s break it down for you.
Essentially, TRID is a rule designed with consumers in mind – because, duh, real estate terms can be confusing! With TRID, things not only should be clearer to understand, but consumers should also be given the proper amount of time to read through documents before closing day.
To break it down further:
TRID is the TILA/RESPA Integrated Disclosure Rule – and you read that right; it is an acronym out of acronyms. TILA is the Truth in Lending Act, and RESPA is the Real Estate Settlement Procedures Act.
This guideline requires easier consumer disclosures to read in order for the borrower to 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 any questions or concerns pop up, you should have time to ask the lender and / or real estate agent to clarify with additional information.
TRID might sound weird and scary, but it was actually created to empower the consumer. Because lenders are required to provide the disclosure agreement before closing, it encourages the buyer and seller to fully understand the entire home buying process.
Since, you know, it is one of the biggest purchases you’ll ever make.
Check out AmeriTitle’s Client Resource Guide to see the full breakdown of what the TRID rule looks like on a calendar.