Posted on February 9th, 2013 No comments
This is a great question. So often closings are delayed and although we can’t control everything, there are definitely certain things a buyer can do that will help the process move forward as smoothly as possible.
First, the loan itself can be a challenge. You have not given your lender much time to get the loan done. Much of the timing is going to depend on the bank’s timeframe. You should ask your lender how quickly they can fund the loan if all goes well.
Second, in order for your lender to get their action items done on time, they will depend on you to get the paperwork they need. So anything they ask of you, try to get it back to the lender the same day, if possible.
Here’s a tip: find out who in your company will provide the lender with your employment verification. Give this person/department the heads up that your lender will be contacting them. This will happen toward the end of the transaction. I’ve had quite a few clients lose days on the loan, because the lender could not get employment verification quickly.
Third, get your appraisal ordered right away. The lender will do this for you, but they often need your go ahead, and your credit card, so they can order the appraisal. Have your agent follow up on the appraisal and make sure it gets scheduled, etc. Appraisals can be another time-suck. Sometimes, the appraisal order gets lost in the shuffle, or the appraiser can’t schedule the appointment for a few days, etc. You want to have your agent stay on top of this.
Fourth, schedule all your inspections as soon as possible and negotiate any repairs immediately after you have done all your due diligence. You never know what an inspection is going to uncover, and it may lead you to additional inspections or bringing in an expert on something. You want to make sure you have the time to do all this.
Fifth, make sure you start working on your homeowner’s insurance.The lender will require proof of insurance before they fund your loan. Don’t leave this to the last minute. Do your insurance shopping. Let escrow know who you will be using for insurance. Escrow will order it for your and you will pay for your first year’s premium in your closing costs.
Sixth. make sure all your funds are in order. If you need to move money from accounts or take money out of retirement accounts, etc, this takes time. Don’t leave it to the last minute. Also, find out what your bank’s process/timing is for wiring money.
Lastly, just make sure you don’t quit your job or buy a car or any other expensive items before you close on your new home. This may sound silly, but I’ve heard so many stories where the buyer did one of these things, and ultimately they couldn’t get the loan. Just make sure you consult your lender before you do anything that may adjust your financial situation.
I always like to tell my clients that a close date is kind of like a pregnancy due date. It may happen on the scheduled date; it could be a day early; it could be a few days late. It’s an estimate. But as you can see there are many things you can do to help close on time.
Posted on February 15th, 2011 No comments
Well, the unbelievable happened. A lender had an appraisal done a few weeks ago on a property that my client was buying, and the appraisal came in higher than the sales price. It does happen! If you have an appraiser who is familiar with the area, you have a much better change of getting an accurate appraisal. And my client got some additional built-in equity.