Longer Escrow’s Ahead

As brokers, we received notice from one of our preferred lenders, we need to be writing our offers  for no less than 60 days.  The changes in underwriting, lender verification and appraisal times have prompted our lenders to advise brokers not to expect closings in 30 days.  What this really means is: Gone are the days of the quick underwriter review.

Appraisers are taking additional time  to set an appointment, verify the comparable properties and any possible seller concessions (closing costs paid on the buyer’s behalf). 

The time the loan documents are spending in underwriting will prolong the escrow closing as well.  We have been told by some lenders to expect 5 – 10 days in underwriting.    I can appreciated the fact that lenders are reviewing loan documents thoroughly, but it is frustrating as a consumer to wait for final loan approval. 

We are educating our buyers and our sellers to expect the additional time to close their prospective transactions.  I know I always feel better when I know what to expect out of a transaction and I am sure consumers are no different.