All You Need to Know About the New Closing Disclosure Timeline

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Today we are here with Christopher Dale from Glen Oaks Escrow to talk to us about some exciting new changes coming with the TRID/Closing Disclosure Timeline. Starting October 3rd, three lending documents (Truth in Lending Statement, Good Faith Estimate, HUD 1 Statement) are going to be combined into one form, called the closing disclosure.

Along with the change to the documents comes a change in the closing timeline. It will take our typical 30-day escrow, and bump it out to what could end up being 45 days. Chris has provided us with a great handout to talk about how the process is going to be affected, but for this blog, let’s take a look at the last 17 days of escrow and what it’s going to be like.

On the 17th day before we close escrow, the escrow and the agents will be working together to prepare all the financials to deliver to the lender so they can prepare the disclosure. Once it’s prepared, the lender will be responsible for delivering it to our buyers.

Once the buyer receives it, they have three days to review it. Once the closing disclosure is reviewed, we can then proceed to close the transaction and exchange the keys.

If there are any changes to the closing disclosure, any material financial adjustments to the transaction can add another 3-day waiting period. Any last minute changes could also trigger another 3-day waiting period.

One more important thing to note is that the 17 days we are talking about here do not include Sundays and federal holidays. To be prepared, your agent needs to have all of your financials dialed in with the lender before that 17-day period.

If you have any questions for us, feel free to give us a call or send us an email. We can’t wait to hear from you!