Disclosures and Forms Required In The Home Loan Process

Laws set under the TILA- RESPA Integrated Disclosure Act – ‘TRID’ –  specify the details that lenders MUST supply to customers making an application for a real estate loan.

Since Oct 1, 2015 loan providers are required to return two disclosures – the Loan Estimate and the Closing Disclosure.

The Loan Estimate is, as the title suggests, an estimate that covers the key costs, risks and features of the proposed loan. When the lender approves a loan, the Loan Estimate must be returned to the consumer in three business days. (See related Video-Genius video on how business days are defined.)

The Closing Disclosure applies if the loan process moves forward. This form covers the key costs of the loan transaction. It must be provide to the borrower a minimum of 3 business days prior to the final loan consummation.

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