Disclosure
Disclosures are essential documents that require lenders to be fully transparent about the terms of the mortgage agreement they are offering. The revised mortgage disclosures have consolidated four separate forms into one comprehensive document known as the TILA-RESPA Integrated Disclosure (TRID).
These disclosures provide important information regarding your mortgage, including a breakdown of the costs you will incur and details about the escrow account that your lender will establish. As the mortgage transaction progresses, you may receive these disclosures at different stages.
During the loan application process, your loan officer will provide you with the Loan Estimate, which is a component of the TRID. You should receive this document no later than three days after submitting your loan application. The Loan Estimate combines elements of the previous Truth-In-Lending Statement and the Good Faith Estimate, helping you understand the associated risks and costs of the mortgage.
Three days prior to closing, you will receive the second part of the TRID, known as the Closing Disclosure. This document combines information from the HUD-1 Settlement Statement and the final Truth-In-Lending Statement. While the initial disclosures present estimations of your costs, the Closing Disclosure details the actual costs you will incur. You have the right to review and dispute these charges and negotiate if necessary, as they may differ significantly from the estimates provided earlier in the process.
