Purchasing a Home Takes At Least 45 Days Starting Oct. 3 2015

The way closings are handled is dramatically changing starting October 3. For one, the process will take now take 45 days from start to finish, at a minimum. Add seven more days if your lender is from out of state. By law, the HUD1 as it is known now, will now be referred to as the Closing Disclosure. The new rules were made to protect consumers and to make it easier for borrowers to understand the costs of the loan process. These changes are being dictated by the Consumer Financial Protection Bureau (CFPB), they are a combination of the Truth In Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) and this change is being referred to as TRID, TILA-RESPA Integrated Documentation.

The Closing Disclosure is required to be 100% accurate and cannot be changed in any way without delaying the process an additional 3 days, thus also delaying the closing date. All changes must be submitted to the lender at least 3 days prior to closing (for in-state lenders). In the past, the final cost document or HUD1 was normally handled by the title company, likely on the same day of closing, and it is now the responsibility of the lender. This ensures that the borrower will be informed 3 days ahead of the closing date how much he/she is supposed to bring in the form of payment. The changes insinuate a higher level of thoroughness and responsibility on everyone's part -- the lender, the seller, the buyer, agents and title company.