WHY YOU’RE IN DANGER OF CLOSING DELAYS S
(AND HOW TO AVOID THEM)
Closing delays are one of the many unintended consequences of recent government regulation. Starting in October 2015, mortgage lenders are required to prepare a new “Closing Disclosure” and adhere to new timelines (see illustration below). This means that 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 is taking place anytime close to a federal holiday.
Here are five things you should do in order to avoid unnecessary delays: Write a longer timeline into your purchase agreement so that you
Schedule the inspection and the appraisal as early in the process
don't have to amend the purchase agreement later on. For most of us,
as possible in order to give yourself and the seller enough time to make
the most difficult part of the transaction now will be adjusting and
adjustments if necessary.
lengthening the current time frames from contract to closing to allow for mailing and delivery of the Closing Disclosure.
Turn in your paperwork ASAP so that unforeseen issues don’t cause more delays. In any mortgage transaction this is the most important
Make sure your purchase agreement is properly worded if you
step to insuring that you close on time.
have seller concessions or seller-paid closing costs (last-minute changes may reset the timelines back to the beginning).
As you can see, it’s more important than ever for you to work with a
Lock your interest rate for a longer period of time because rate lock
skilled lender! We have been preparing for this implementation since
extensions are likely to trigger new disclosures and reset the timelines
last year. We are ready to meet your closing date. Please contact me
back to the beginning.
for more details.
913-707-1525 KCMortgagePlanner.com Curtis@KCMortgagePlanner.com NMLS #454625
For free consultation and more information about mortgage loan programs, call Curtis at 913-707-1525. © 2015 CMPS I NSTITUTE . A LL R IGHTS R ESERVED.
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