TRID stands for TILA-RESPA Integrated Disclosure. These federal rules require lenders to provide you with a Loan Estimate (LE) within 3 business days of receiving your application and a Closing Disclosure (CD) at least 3 business days before closing.
The TRID rules were created to make mortgage costs transparent and give you time to review your loan terms before committing. They replaced the old Good Faith Estimate and HUD-1 with standardized forms that are easier to compare across lenders.
Understanding TRID gives you confidence that you are getting the deal you agreed to and protects you from last-minute changes.
The Loan Estimate Rule
Within 3 business days of submitting a complete loan application, the lender must provide a Loan Estimate. This document shows your interest rate, monthly payment, closing costs, and other loan terms. You can use the LE to compare offers from different lenders side by side.
The Closing Disclosure Rule
At least 3 business days before closing, the lender must provide a Closing Disclosure. This final document shows the actual terms of your loan. Compare it carefully with your Loan Estimate. If certain fees changed by more than allowed limits, the lender may need to provide a revised CD and restart the 3-day review period.
What the Loan Estimate Contains
The LE includes the loan amount, interest rate, monthly payment, estimated taxes and insurance, closing costs in detail, cash to close, APR, and whether the loan has prepayment penalties or a balloon payment. It is designed to be clear and comparable.
How to Use the LE
Get Loan Estimates from multiple lenders on the same day. Compare the interest rate, APR, closing costs, and monthly payment. Pay attention to lender fees vs. third-party fees. The total closing costs and the APR give you the best apples-to-apples comparison.
Your Rights Under TRID
If the Closing Disclosure shows terms different from the Loan Estimate, you have the right to ask why. If certain fees increased beyond allowable tolerances, you may be entitled to a refund. You also have the right to an additional 3-day review period if the APR, loan product, or prepayment penalty changes.
Timeline from Application to Closing
Day 0: you apply. Day 3: lender provides LE. Days 3-30: processing, underwriting, appraisal. At least 3 days before closing: you receive CD. Closing day: you review and sign the final CD. The TRID rules add structure and protection at every stage.