5. Can Lenders Request More Information?

by Local Title

While the TRID (TILA-RESPA Integrated Disclosure) rule outlines six required pieces of information for a valid loan application, creditors do have the flexibility to gather additional data deemed necessary for the lending process. Understanding how creditors may collect supplemental information can provide clarity for borrowers navigating the loan application process.

Beyond the Basics

In addition to the essential components of a TRID loan application—name, income, Social Security number, property address, estimated property value, and mortgage amount sought—creditors may request additional information to assess a borrower’s creditworthiness, financial stability, and eligibility for financing. This supplementary data may include details such as employment history, assets, liabilities, and credit history.

Flexibility for Creditors

Creditors have the discretion to collect whatever additional information they deem necessary to evaluate loan applications effectively. Gathering comprehensive information allows lenders to make informed decisions and tailor loan products to meet the unique needs and circumstances of individual borrowers. This may involve verifying employment, reviewing bank statements, or obtaining documentation related to assets and debts.

Timely Disclosure Requirements

However, it’s important to note that as soon as borrowers provide the six required pieces of information, creditors are obligated to provide a Loan Estimate for approved loans within three business days. This requirement ensures timely disclosure of key loan terms and costs to borrowers, empowering them to make informed decisions about their financing options.

Navigating the Loan Application Process

For borrowers, understanding the information required for a TRID loan application and the creditor’s ability to collect additional data can streamline the application process. By proactively providing requested information and cooperating with lenders, borrowers can expedite the loan approval process and receive timely loan estimates for approved loans.

Communication and Transparency

Clear communication between borrowers and creditors is essential throughout the loan application process. Borrowers should feel comfortable asking questions and seeking clarification about the information requested by lenders. Likewise, creditors should be transparent about their information-gathering practices and provide borrowers with a clear understanding of the loan terms and conditions.

While creditors may collect additional information beyond the six required pieces for a TRID loan application, they must adhere to timely disclosure requirements for approved loans. By understanding the flexibility afforded to creditors and maintaining open communication, borrowers can navigate the loan application process with confidence and clarity.