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My Closing Date is Extended, Now What?
Buying and selling homes has a lot to do with timing. When negotiating contracts, it’s common to want to select a closing date on a Friday or the first or last day of the month. Know that those are the busiest times of the week and month for title companies and lenders. With the current financial climate, most closing dates are chosen as to the 30 day window of time that might be needed from the purchase contract date to accomplish financing goals. So watch your closing dates to avoid extending a closing date.
A purchase contract date starts the clock ticking. A lender typically needs 30 days or more to process a loan for a borrower. However, it’s always wise to allot enough time, ie more than 30 days, in case there are “snags” in the borrowing process. These days, most lenders will suggest 45 days due to new guidelines created by the Consumer Financial Protection Bureau (CFPB).
A “snag” could be that a borrower has moved money from one account to another and needs to document that money transfer to an underwriter. If the borrower has applied for new credit, increased the debit on a credit account, or any other larger ... more
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