Top Reason's Your Settlement Might Be Delayed
Posted Sep 3, 2009 @ 3:36 pm, Viewed by 158 Visitors, Read 158 Times.There are many reasons why your settlement may be delayed. The first reason would be the appraisal. Since the HVCC law was passed back in July appraisals have taken longer to get done. If the appraisal comes in low, then the loan may need to be restrucruted and re-underwritten. This will add time to the mortgage process, and could end up delyaing closing. The second reason is the new HERA laws With the new laws in place we have to wait anywhere from 4-7 days to order an appraisal once the lender receives the loan file. With already slow underwriting times, this just adds to the time. Also, as part of the new HERA laws if your appraisal comes in low and the loan terms change, the new terms must disclosed, and a waiting period is put in place for disclosures to be sent to you before the loan can be underwritten again. Another aspect of the HERA laws that could delay loan closing is an incorrect intial disclosure of fee's. If the final APR is off by more than .125% from your intial, then once again, there needs to be re-disclosure, and an waiting period is put in place before your new loan can close.
While the HERA laws, and HVCC regulations are the main reasons for delayed closings, other minor things can effect your settlement also. Make sure you provide your loan officer with updated information. If your loan officer has to keep asking for current paystubs or bank statements, it will slow down the process. Also, get the information to your loan officer as soon as possible. If it takes a week to return documents to your loan officer, then it will also slow down the process.
Make sure you use an experience loan officer who knows about the new laws. You want to make sure they know how to disclose fee's correctly, and know how to structure loans the proper way.
Rate this Post!
Share this Post
Print
Social BookmarkingThis Post Has No Comments.
REW Blogs User Stats
Currently Online Users:
0
Total Users:
2,395
Entries:
7,614
Unique Views:
6,471,332
Total Views:
6,810,414
Total Comments:
9,405
Total REW Points:
510
I've lived in the DC metro area my entire life; growing up in Montgomery County Maryland and attending the University of Maryland. I now live in Arlington, Virginia. Living all around the DC area has given me a great understanding of the real estate market.
After graduating from the University of Maryland, I worked as a loan officer in Gaithersburg for three years. I then opened my own mortgage brokerage company, which I ran and operated successfully for several years before agreeing to a buyout by my partner. Now, I have found a home at Choice Finance where I am able to grow professionally and better serve my clients.
My experience has helped me refine my business techniques and find my niche in the FHA Jumbo Market. It has also enabled many clients to take advantage of this program, which in turn lowered intrest rates and saved them money. My combination of experience and know-how has lead me to become a great resource for my clients and enabled them to achieve their dream of homeownership. Read More
Contact Me
RSS Feed- This User's Stats
-
Blog Entries: 26Average Blog Rating: 0Unique Views: 5,958Total Views: 6,072Comments Posted: 0Comments Received: 1REW Points: 0
Top Rated
REW Blogs RSS Feed