Lots of people don’t think about what the best day is to close on their new home….when you’re buying…thinking about a few things in advance may help by not adding additional stress. Don’t just pick a great date and think that’s going to work without taking into consideration a few items:
- How long it will take to get your loan….very important. There are no “sure” dates in this situation…. the type of loan and your situation can delay closing. If you are getting a VA loan (because you’re Veteran….God Bless You and Thank YOU for your service!) your loan may sometimes be delayed because the VA appraiser is just very busy. Your lender might be great….but your lender can not “rush” the appraiser. We’ve had appraisers (VA and regular appraisers) write in the wrong neighborhood…a delay….take 2 weeks to submit their final appraiser….a delay….say a property is a commercial property and it is not….another delay. Maybe you should ask for almost 60 days to close for a VA loan? Happens more often than you think.
- If you are self employed….your lender and the underwriter may ask you to provide items that just seem like they are “none of their business”….trust me…if you don’t provide these items….you won’t get the loan. Get your lender the information asap…the longer you delay getting them these items….the longer it takes to get the loan. I tell people all the time that they need to put their underwear (clean, please) in a paper bag and add it to the pile of items the lender will need….it’s a joke…but almost the truth!
- You went online and applied….sometimes it works, sometimes it doesn’t. We had a buyer that picked a lender and after 60 days still didn’t have a loan….or even a clue if they were even near getting a loan. We had the buyer switch to a lender we trust….and it still took almost 60 days because the appraiser wrote the condo as a “commercial building”….and the borrower/buyer was self employed and the lender needed TONS of paperwork to document it was a good loan to the underwriter. Be prepared…these things can happen and do happen all the time.
- The appraisal comes in with a value lower than the sales price….sadly, some appraisers are in a hurry and pick properties that may not justify or even qualify as comparable homes so the appraisal value comes in low. Good luck getting the appraiser to adjust his values…..he doesn’t have to do anything or change anything. But your loan now may change…you may have to put up additional funds to make up the difference…you can get lucky and have the seller agree to lower the price. But this usually delays the closing date.
- How many holidays occur between the contract date and the closing date may make a difference in when you get a loan. Lots of lenders take holidays off….which means a 4 day weekend and no one is working on your file. Guess what….some appraisers even take off for holidays….another possible delay.
- Try not to pick a Friday….if the seller can’t sign until 1 pm you might not get keys until Monday when the property “funds”…..very frustrating if you have a moving van sitting outside the title company with all your stuff in it and the dog waiting in the lobby. Try to pick a Wednesday or a Thursday….to make sure you get keys in time for your move. We had a seller close at 4:30 on a Friday….and the buyers were in the lobby of the title company waiting for keys. The agent called us at 10 that morning asking us if there was any way our sellers could come in earlier so the buyers could make sure they got keys. One seller was at work…..unable to leave early without giving notice….a common practice for most jobs. I wanted to tell the agent “your poor lack of planning is not my seller’s emergency”…but I resisted and called the seller to see if there was any way he and his wife could come earlier….I want everyone to be happy all the time. I couldn’t help but feel sorry for the buyers…it wasn’t their fault that no one considered that the seller might not be able to make an appointment to close early in the day.
- Try not to pick the day before a long weekend….because EVERYONE else is closing on that date also….so you run the risk of not getting keys because some offices have “skeleton” crews because the most “senior” staff is on vacation already.
Wishing you much luck and happiness with your new home and I hope this information has been helpful!