Which documents are required for use in TRID transactions?

In TRID transactions, which refer to the TILA-RESPA Integrated Disclosure rule, the key documents required are the Loan Estimate and the Closing Disclosure. The Loan Estimate provides borrowers with important details about the loan they are applying for, including the estimated interest rate, monthly payment, and total closing costs, helping them to compare different loan offers. On the other hand, the Closing Disclosure is the final statement that outlines the actual terms and costs of the mortgage, received by the borrower at least three days prior to closing.

These documents streamline the lending process and enhance transparency, ensuring that borrowers are well-informed and can make educated decisions about their mortgage options. This dual requirement helps ensure compliance with federal regulations aimed at protecting consumers in the mortgage process, making it crucial that both documents are included in TRID transactions.

Other choices, while containing useful documents in various real estate transactions, do not meet the specific requirements established under TRID regulations, which are focused solely on the Loan Estimate and Closing Disclosure.