So here we are; week sixteen of a step by step process to be prepared and have your clients, referral partners, and your team fully prepared for the TRID changes and how to still close transactions in thirty days or less. While others travel the country telling everyone just to add fifteen or thirty days to their contracts, I wanted my people to offer a plan by which the people and the process go better so that the customers didn’t have to suffer through a longer transaction process. Three webinars, an ebook, a joint webinar with Realtor®, trainer, and coach, Terri Murphy, a podcast, and these sixteen sessions will set you apart from the competition. All you have to do is implement the plan and share the solution!
While the main changes are the LE replacing the GFE & TIL, the biggest issue will remain providing the CD (which replaces the old HUD-1 on most transactions) three business days prior to closing. Once you understand that we need everything to come together five days prior to closing so the CD can be issued, you have the makings of a plan. So follow the plan, share the solutions, and become the expert in your market. Once you do, business will come looking for you!
This week we end the discussion with changes. While it is impossible to forecast everything that will take place during the purchase process, most things are foreseeable. In fact, most things should have been planned for. However, changes are going to happen and when they do; we need to be sure everyone is communicating this information back to the loan originator. Some changes are never going to be an issue. Some changes will always be an issue; while other changes might or might not be an issue. The important point is that whatever it is, no matter how small, it is important to share this information quickly with the loan originator so that they can determine course of action.
As we have talked about before, repairs are the most likely change we will encounter. Handling repairs can no longer be an item left for a simple closing table adjustment. In some cases, it won’t be allowed. In many cases it could cause for a new set of disclosures and an additional three day wait. In rare cases, it may kill the deal entirely! So be sure that everyone gets on the same page with the lender about repairs and how they must be handled.
We also have product or program changes, rate and closing cost changes, insurance and tax changes, all of which could cause a re-disclosure and a new three day wait! So let’s all get out in front of the process. Let’s identify all the players and set forth the timeline of events. If along the line there is a change of any kind, it is important that the lender be made aware of these changes and make any adjustments quickly so that all the parties know if there is going to be a delay!
Everyone wants to close on time. Nobody wants to delay a closing. Delays can cost thousands of dollars in addition to a great deal of stress and unfortunately, Drama! Nobody wants or needs real estate drama. Follow these steps and you will be closing on time!
- Set the proper expectations with all parties early!
- Provide a transaction timeline and be sure everyone is clear about their responsibilities toward the transaction timeline.
- If any changes or delays occur, communicate with the lender immediately.
- Bad news is like a dead fish, it doesn’t get better with time!
- If you don’t know the answer, go get help!
- Monitor the transaction timeline and be sure to communicate effectively if someone or something misses the timeline.
TRID is here and you can either provide a higher quality of service and prosper, or complain about it and be bitter. The choice is yours!