I have become increasingly frustrated when Realtors expect us to "eat" delays. I will go into detail. It's understandable for Realtors to be frustrated if no one is communicating with them and they simply don't know what is going on, but in my small shop, we are a three woman team, and between myself as the loan originator, my processor who has been in the business sixteen years, and our Assistant, we work super hard to communicate with everyone during the transaction. We communicate with buyers, the selling agent, the listing agent, title companies, etc. all to keep the transaction going as smoothly as possible.
First, let's talk about closing dates. If you call me on Thursday, the 3rd, and ask me if we can close by the 30th, and I say it's possible, but then you don't get me a PA until the following Tuesday on the 8th, don't expect us to "eat" those five days.I had a transaction recently where the Realtor was upset because we closed 30 days from the date we got the PA. If all the parties are hming and hawing for days, please realize this is time that if everyone is trying to expedite, we could have been using to order appraisal, title, VOEs, VODs, VORs, gift letters, the buyer could have been liquidating assets, etc. We can't order appraisal and title work until we know the end negotiation. We can't order those things with verbal agreements.
Next, let's talk about inspection delays. If you want to close in 30 days but dicker back and forth between the buyer and seller over inspections for 15 days, don't allow us to order appraisal until inspections are done, don't expect us to "eat" those 15 days.Once we order the appraisal, if it's Conventional, due to the new HVCC laws, please remember, we've lost control! We go online, order through some company that doesn't know us, has NO incentive to return the appraisal to us in a timely manner, and then we wait! The typical time to get the appraisal back to us is now at least one business week or more! We can't order before if the client doesn't want to risk the cost and if you don't know the final price due to repair negotiations. We can't deliver the loan to underwriters until the appraisal, title, and all verifications are in. With the banks being backed up due to the mad dash to the finish line for the 8K tax credit as well as all the refi's going on, the UW lineup is typically at least one business week right now. So, in this example, we've waited 15 days for inspections to get dickered out, the appraisal takes another five-seven calendar days minimum, the file sits in the UW traffic jam for five business days- wow! We're already at 29 days in to the 30 days. And please don't expect us to "eat" borrower caused delays. If borrowers are getting gifts, and the gift giver drags their feet on getting us the appropriate required documentation, please understand this, too, causes delays. Once it comes out of underwriting, they typically issue a "conditional" approval. We go back to the borrowers, title folks, Realtors, or whichever party we need to address and get additional minor items needed by the UW. Let's say we submit this to the bank the same day or soon as we have the info. Then it goes back in the traffic jam for two more days. Then GOD WILLING it comes back out of UW with a "clear to close", then we have to give the closing department time to prepare closing docs., and we can close two business days later. When you take a serious look at all the parties in the transaction, it's pretty easy to understand why your closing date got pushed back for reasons outside the control of the broker or lender.
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