Buyers Ask: How Far to the Mortgage Closing Table?
It is no longer the stairway to heaven(yes, we all loved that Led Zeppelin
song but it’s not playing now) getting that commitment letter from the lender and waiting hopefully the 10-14 days to close on a piece of Rhode Island real estate.
No, those days disappeared awhile ago. As lenders requirements tightened with Fannie Mae & Freddie Mac, so goes the 3 steps to a loan closing.
Even if you are so called ’cut and dry’ buyers with W-2s and steady weekly paychecks the underwriters in the loan process will still ask for documentation of a loan you may have had from 2 years ago, etc. You can squirm, fuss but you must get that information to your lender if you want that mortgage to make the closing table. You can get that information from your documentation files so the underwriters will issue a commitment letter.
However, if you are like some of my clients, you might own a business and not always pay yourself consistently, have loans outstanding from family members, etc. So how far off is the closing table you wonder? Maybe weeks for sure.
And lo and behold the day before a commitment letter is to be issued, it IS NOT! The underwriters keep their piles of loans in front of them until THE day before commitment letter is due. Then review a mortgage file and send out what is called ‘conditions’ to be addressed by the buyer right away.
So to put it bluntly the closing table seems far off right now! The list of conditions is long, it may be a holiday weekend and the buyer is away with no paperwork at hand. Guess what? It is time for an extension for commitment letter and closing date!
If you own a business do not listen just to your mortgage lender, listen to your real estate agent and get all your documentation in order- Early on! More than you need is best.
Past tax returns, loans, explanations on money gifts made and have your accountant close at hand. Getting to that closing table is a long climb nowadays so don’t be disappointed. It is not YOU, it is the mortgage process. Sellers you need to be more patient with your buyers nowadays. So keep asking “How Far to the Closing Table?” Buyers Ask: How Far to the Mortgage Closing Table?
Ginny Lacey Gorman is your go to North Kingstown Realtor® for real estate in North Kingstown RI and beyond…knowing the geographic area, schools, happenings, important tidbits of information and businesses well. Waterfr