CodeMark TV Episode 24
So we just walked you through the entire home loan process. We talked about it being all wrapped up in 30 days or four weeks. Can loans take a little longer than four weeks? Yeah, they can. Whose fault is it? Well let’s talk about that; let’s talk about what might delay your closing from that typical 30-day transaction.
Chasing the Rate
You get a lot of buyers that are looky-loos. They want to get the lowest interest rate, and they chase an 1/8 or 1/4 of a percent. And even though their realtor tells them “Look, you’ve got to lock this down, you’ve got to get your paperwork in, you’ve got to get it turned in so that it gets into underwriting” they (and you) have that right to do that. But, just know that when the clock is ticking, time is passing. Could this create a little bit of a jam somewhere? You bet.
And where does that usually happen? Well if you don’t get your file into underwriting early and on time, that time has got to be made up somewhere. So yes, that’s one place that the process could get slowed down, and that usually lands on the borrower.
Another time you may get delays is during the appraisal. During the buying and the selling season appraisers get busy. So even though your loan officer calls them up and says “Hey, we’d like to schedule an appraisal as quickly as possible” they’ll say “Hmm, wow, let me see what my schedule looks like; I can get out there next week.” Next week from today, a whole week later, that ain’t cool. But, if that happens, everyone has to wait, you the borrower, the seller, all of the agents, the title company, that’s just how it goes.
So yes, that’s why it’s even more important to get your paperwork submitted in the beginning, so that you’ve got some buffer in case the appraisers are busy.
Also, if the appraisal comes in short (short meaning it doesn’t match the agreed purchase price) the sellers are going to be a little upset about that. They’re going to want to reconsider if they want to sell it for less, and now you kind of go back to negotiating.
So those types of variables could, yes, delay your closing.
Alright, now you know what those things might look like, let’s just pray and hope that all that won’t happen. The part that you can take advantage of, or take control of, is to get your paperwork in on time.
Until next time I’m Mark MacInerney, President and CEO of Codemark Financial. You can find me on Facebook Live, Lunch with Mark at noon every Friday, and you can catch me here on CodemarkTV, on YouTube.