Buying a home is one of the biggest purchases you will ever make; it’s not the time for snap decisions. When the “Know Before You Owe” mortgage rule goes into effect — also called TRID or TILA-RESPA Integration Disclosures — you will have more time to understand and approve all aspects of a loan before signing on the dotted line.

While this added review time can mean increased confidence, it can also mean that it might take longer to close on your new home. Here are the important changes you should know:

3 Days

The reason the entire buying and selling timeline is changing is due to the three-day disclosure period. Buyers will now receive the Closing Disclosure a minimum of three days before the actual closing date so they have ample time to review loan closing terms and figures, as well as details of the transaction with their attorney. Any changes made to the loan terms after this disclosure is received could cause a further delay of up to three days.

45 Days

The average number of days it takes to close on a home — from purchase offer acceptance to receiving the keys — was previously estimated at around 30 days. After the change, the National Association of REALTORS® recommends buyers, agents and attorneys plan for 45 days to account for the inevitable contract changes.

90 Days

While the homebuying experience is different for everyone, many experts agree that you should plan for the entire process to take at least 90 days — 45 days to find a home and put in an offer, and then 45 days to close.

So what does all of this mean to you?

The new timeline is designed to inform and protect you, but you need to work with professionals who are well versed in these new guidelines to make sure your transaction goes smoothly. The best thing you can do is to get preapproved before making an offer, and provide your real estate team with all of the necessary documentation in a timely manner.


*Credit to CJ McCann  for the article*