Closing delays are one of the many unintended consequences of recent government regulation. Mortgage lenders are required to prepare a "Closing Disclosure" and adhere to the timelines illustrated below. Any last-minute changes to your deal structure could cause delays of up to a week on purchase transactions, and up to two weeks on refinance transactions. Delays can be even longer if your transaction takes place anytime close to a federal holiday.
Here are five things you should consider doing in order to avoid unnecessary delays:
- Write a longer timeline into your purchase agreement so that you don't have to amend the purchase agreement later on.
- Make sure your purchase agreement is properly worded if you have seller concessions or seller-paid closing costs (last-minute changes will re-set the timelines back to the beginning).
- Lock your interest rate for a longer period of time because rate lock extensions are likely to trigger new disclosures and re-set the timelines back to the beginning.
- Schedule the inspection and the appraisal as early in the process as possible in order to give yourself and the seller enough time to make adjustments if necessary.
- Turn in your paperwork ASAP so that unforeseen issues don’t cause more delays.
As you can see, it's more important than ever for you to work with a skilled lender! Please contact me for more details.
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