4. The 6 Required Pieces of Information

by Local Title

In the realm of real estate financing, adhering to the TRID (TILA-RESPA Integrated Disclosure) rule is crucial for both borrowers and lenders. A valid loan application under TRID requires the submission of six essential pieces of information. Let’s delve into these key components:

6 Required Pieces of Information

  1. Name

The borrower’s full legal name is the first piece of information required for a TRID loan application. This ensures accurate identification and documentation throughout the loan process.

  1. Income

Income information provides lenders with insights into the borrower’s financial capacity to repay the loan. This includes details such as salary, wages, bonuses, commissions, and any other sources of income.

  1. Social Security Number

The borrower’s Social Security Number (SSN) is essential for identity verification and credit reporting purposes. It allows lenders to access credit reports and assess the borrower’s creditworthiness.

  1. Property Address

The address of the property being financed is a fundamental aspect of the loan application. It enables lenders to evaluate the property’s location, value, and eligibility for financing.

  1. Estimated Value of Property

Providing an estimated value of the property helps lenders assess the loan-to-value ratio (LTV) and determine the risk associated with the loan. This estimation may be based on appraisals, market analysis, or other valuation methods.

  1. Mortgage Loan Amount Sought

The desired loan amount indicates the borrower’s financing needs and preferences. It helps lenders tailor loan options and terms that align with the borrower’s financial goals and capabilities.

Submitting a TRID Loan Application

Under TRID rules, borrowers can submit these six pieces of information in writing or orally. A live conversation or phone call, backed by a written record of the conversation, constitutes a legitimate loan application. Once these components are submitted, lenders are obligated to provide a Loan Estimate for approved loans within three business days.

By understanding the components of a TRID loan application, borrowers can ensure they provide the necessary information for the loan process to proceed smoothly. Working closely with lenders and adhering to TRID requirements fosters transparency, accountability, and consumer protection in real estate financing transactions. Whether applying for a purchase loan, refinance, or construction loan, complying with TRID guidelines is essential for a successful and compliant lending process.