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Closing on time

May 12th, 2023 11:30 AM by Salim (Sam) Kader MLO# 130505

The TRID rule and its associated disclosures was part of a mandate to CFPB in the Dodd-Frank Wall Street Reform and Consumer Protection Act in effect since 2015. 

Under TRID - borrowers will receive 2 government-designed forms during the mortgage process :

  1. Loan Estimate 
  2. Closing Disclosure

By law, these 2 forms must be issued at specific times when specific conditions have been met. Loan Estimate must be issued within 3 days of receiving all of these 6 items below:

  1. Name
  2. Income 
  3. Social Security Number
  4. Property Address
  5. Estimate value of the subject property
  6. The loan amount. 
3 days are counted as normal business days not including Saturdays, Sundays, and legal public holidays. Any change to any of the 6 items above will require a new disclosure - Revised Loan Estimate must be issued at least 1 day before Closing Disclosure or at least 4 days prior to closing.

Closing Disclosure must be issued at a minimum - 3 days prior to closing. Days are counted including Saturdays but excluding Sundays and legal public holidays.  Closing Disclosure confirms final loan costs supported by Settlement Statement issued by escrow/title company and final loan terms supported by signed loan disclosures issued by your loan originator/lender.

What can trigger a delay? 

Delay -  Once we have a signed around Purchase and Sale Agreement (PSA), time is of the essence. Any delay be it intentional or inadvertent is a huge risk to all real estate transactions.   Providing requested documents or signatures to us a day or a week late may seem like no big deal at the time, but the clock is always ticking.  

Indecisions -  Buying or selling real estate is the biggest investment in most of anyone’s life. You should do so with firm understanding that you will be required to make important decisions. You can rely on the experts such as your realtor and loan originator but you alone ultimately will have to make that important decisions. Do your due diligent before signing the PSA.  Once you have decided and once have signed the contract, then everyone else in the team can make progress from that point.

Unfounded expertise - The internet is a wonderful thing to educate matters and to gain knowledge so you can conversate intelligently with the professionals.  Do you own research but please work with your preferred local mortgage broker and realtor. In real estate - too many chefs in the kitchen will always spoil the broth. 

The unreasonable pursuit of perfection  - Majority of closed real estate transactions are inherently complex with twists and turns, drama and excitements. No two transactions are alike.  Work with professionals such as your local mortgage broker and realtor that can guide you over your journey to a closing table.  

Loan Estimate alteration. Changes to any of the 6 components in Loan Estimate will require a revised Loan Estimate to be drafted and re-setting the clock back 3 days.

E-mail tardiness. Closing Disclosure and Loan Estimate are are sent via e-mail. Both documents must be opened and viewed instantly.  The 3 days clock will only start ticking once that email has been clicked, opened, and viewed by a borrower.  Electronic communication is our preferred way of communication especially under COVID-19.

Escrow irresponsiveness. Lenders will issue a Closing Disclosure (CD) in collaboration with an escrow company. A delay by an escrow agent in issuing a Settlement Statement will result in closing delay.  

It takes a team to close successfully and it is my goal to get you to a closing table on time by being proactive and being knowledgeable.  Here are some more tips on closing on time from your 
mortgage broker and from an escrow company.
Posted by Salim (Sam) Kader MLO# 130505 on May 12th, 2023 11:30 AM



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Pacific Coast Financial LLC

Lic# MB 78982

2150 N. 107th Street Suite 170
Seattle, WA 98133