Selling or purchasing a home can be stressful, especially when issues arise that may delay closing dates. A smooth closing that takes place on-time is certainly in everyone’s best interest. Understanding potential closing delays in MA real estate deals can help you avoid them. Here are a few common ones.
Independent appraisals are ordered by your lender after you have signed the P&S and formally applied for the mortgage. However, it cannot be ordered until you have 1) formally applied for your home loan, 2) signed the Purchase and Sales agreement, and 3) submitted payment for the appraisal fee. To avoid delays, be sure to send the signed P&S to your lender right away. Additionally, submit payment as soon as possible. It could take several days for the appointment to be scheduled and then up to two weeks for the report to be prepared. Make sure that you are allowing enough time for this to occur before your mortgage commitment deadline.
The most common delays have to do with missing buyer information. As your loan is processed, you may be asked for different things….
- Sign lender disclosures.
- Answer questions (explain certain discrepancies or elaborate on specific facts).
- Provide additional documentation.
- Furnish more recent copies of financial paperwork (bank statements, paystubs, etc.)
It is always important to respond promptly to these requests. Once information is received back from you, your file must go back through underwriting for review. Only when all conditions are met will your loan be granted approval. Failure to promptly respond to lender requests may result in unnecessary delays that may cause you to miss important deadlines.
Other Potential Closing Delays in MA
Timing is everything when it comes to home purchases. Sometimes closing delays are caused by the items noted above, and other times they result from unrealistic timeframes. Always check with your lender ahead of time on how much time they need for the mortgage commitment and closing before you prepare offers on homes. Additionally, maintain good communication with your loan officer and real estate agent. Prompt replies to questions and requests can go a long way. By being diligent, you can do your part to achieve a timely closing.