Every week, we ask a real estate professional for their Short List, a collection of tips and recommendations on an essential topic in real estate. This week, we talked with Amy Buynoaski, a vice president/mortgage banker at Fidelity Bank, for the five things agents should keep in mind about the loan application process, now that TRID regulations are officially in place.
5. Lenders cannot require borrowers to send their financial documents to review at the time of pre-approval. We will review their credit report and we will request to review pay stubs, tax returns and bank statements, but we cannot not require these documents. Financial documents are required once the borrower has a home under contract, and we can begin to process a loan for them.
4. Set realistic expectations for closing dates. It is recommended to plan for a 45-day closing. Until everyone has had a chance to work through a couple of closings and review the closing disclosures, 30 days will, we hope, be more than enough time for closings; however, until the bugs have been worked out, it is best to plan for 45 days.
3. Communication is going to be a crucial key to success to keep the lines of communication open with lender and attorney.
2. It is very important that lenders know if there is an addendum to increase or lower the sales price prior to closing, or if there is an increased seller paid closing costs PRIOR to closing. Also, it would be best to provide us with city and county taxes and HOA fee’s at the point of contract, and we will need commission agreements and home warranty invoices. If a home is on septic and the borrower is obtaining an FHA loan, we will need the invoice for the inspection. Those are just a few examples of what we will need to insure a smooth closing.
1. Make sure the attorney is approved by the lender.
Amy Buynoaski is a vice president/mortgage banker at Fidelity Bank. Amy has over decade of success in the mortgage industry, and she specializes in renovation loans.