Are Baton Rouge REALTORS writing purchase agreements with unrealistic closing dates (too soon)?
First, let me say if you can close in 30 days, I'm all for it! I'm not here to poopoo on your parade! My purpose is to remind you that NAR itself is telling REALTORS because of TRID, to relax your closing time expectations! And, if the home requires repairs and Agents know this upfront, then it makes no sense to write purchase agreements with unrealistic closing dates.
Second, Appraisers can't answer the question our schedulers here all so often is, "Why did the Lender take so long to order the appraisal? Don't they understand we have a closing date of...." What REALTORS need to understand is there's a system of checks and balances via TRID and your closing date could be both irrelevant and unrealistic.
Are you writing purchase agreements with unrealistic closing dates?
BATON ROUGE REALTORS, PLEASE listen to NAR's own podcast on this topic, from a normal 30 day closing to a 45 day closing period. CFPB's new TRID mean REALTORS need to adjust from a normal 30 day closing period to a more realistic 45 day closing. This comes directly from NAR.
THIS HAPPENED TODAY:
Just received a purchase appraisal order from an AMC at noon today with a due date of 11/24. Called Listing Agent to schedule appraisal visit who says that's not going to work because we're closing on 11/23. Totally, Totally Unrealistic on the Agents part.
This chart posted on March 13, 2015 shows average of 40 days and this is BEFORE TRID!
Source: themortgagereports dot com
WHAT REALITY IS:
What Lisa at my office, my home appraisal scheduler, hears from Agents is why did it take so long for the appraisal to be ordered? And, we can't answer this question, we're not the Lender or the AMC ordering the appraisal. AMC stands for Appraisal Management Company.
Why did I bring this up?
Because 2 weeks ago, there was a deal with a closing date of 11/12, which should not have been written as such. Why? Because loan type was RD (strict standards), it was a townhome development where HOA was negligent in maintaining exteriors of multiple units with peeling paint / rotten wood, subject had both peeling paint / rotten wood and the seller is at the mercy of HOA to repair her unit. And, seller is paying $175/month in HOA fees or $2100/year. So, until the HOA gets around to repairing exterior, this deal won't be closing anytime soon. They have to call me first to do a Fannie Mae 1004D repair completion certification before they can close.
So, what NAR is saying about TRID is to breath a little easier and expect it to take longer to close your deals. Eventually we'll get used to TRID and closing times will become shorter.