27 July 2009.
Today was supposed to be our original close date but some things have transpired that prevented us from getting our keys today. The appraisal report came back on Friday afternoon and was sent to the underwriter for review. Because the paper work was received so late on Friday, it won't be sent to the escrow office until Monday afternoon (today). So, the hope is that we'll sign our papers late this afternoon, the lender will get them back on Tuesday morning for final approval and release the funds to the escrow company, the escrow company will disburse the funds and send the title off to the county clerk's office. Hopefully, this will all happen before 2:00pm on Tuesday, which is when the clerk's office stops recording transactions for the day. If all goes well, we'll get our keys on Tuesday afternoon!
July 27, 2009
July 22, 2009
Bump in the road
22 July 2009
In home buying, there are a lot of variables that have the potential to slow down the process. We've been fortunate so far to have experienced almost no slow down whatsoever...until today.
There's a new rule that prohibits the lender from having direct contact with the home appraiser that everyone is getting used to in real estate. It makes sense to me, considering that there were lenders who were pressuring appraisers to appraise homes at certain values (usually over-inflating the price of the home). This predatory practice is one of many that led to our current economic state. So now we've got a bunch of rules that should prevent predatory lending practices and helps home-buyers from getting in over their heads.
However, it seems to me that even with all these new checks and balances imposed on the home buying process, the greatest potential for failure is with the appraisal and the turn around time it takes for the appraisal report to come in. I've heard a few anecdotal reports of appraisers under-appraising homes by less than 1-2% of the purchase price of the home, which only serves to slow down the process. The other point of failure is the lack of an enforced turn around time for an appraisal report to be submitted to the lender. The norm is 2-3 days after the appraiser inspects a home. In our case, we're now going on day 5 and THERE'S NOTHING WE CAN DO ABOUT IT... except to light a candle and pray to St. Joseph the Carpenter (patron saint of real estate) for this deal to close! The management company said that they would send the report by close of business yesterday and didn't come through. Now they're saying we'll have it today.
So what does this mean? Well, we were supposed to sign our loan documents tomorrow so we could close next Monday. That appointment has now been cancelled and we're looking at signing on Friday evening, maybe next Monday; and closing on Tuesday or Wednesday. I'm hoping St. Joe will help us out here.
In home buying, there are a lot of variables that have the potential to slow down the process. We've been fortunate so far to have experienced almost no slow down whatsoever...until today.
There's a new rule that prohibits the lender from having direct contact with the home appraiser that everyone is getting used to in real estate. It makes sense to me, considering that there were lenders who were pressuring appraisers to appraise homes at certain values (usually over-inflating the price of the home). This predatory practice is one of many that led to our current economic state. So now we've got a bunch of rules that should prevent predatory lending practices and helps home-buyers from getting in over their heads.
However, it seems to me that even with all these new checks and balances imposed on the home buying process, the greatest potential for failure is with the appraisal and the turn around time it takes for the appraisal report to come in. I've heard a few anecdotal reports of appraisers under-appraising homes by less than 1-2% of the purchase price of the home, which only serves to slow down the process. The other point of failure is the lack of an enforced turn around time for an appraisal report to be submitted to the lender. The norm is 2-3 days after the appraiser inspects a home. In our case, we're now going on day 5 and THERE'S NOTHING WE CAN DO ABOUT IT... except to light a candle and pray to St. Joseph the Carpenter (patron saint of real estate) for this deal to close! The management company said that they would send the report by close of business yesterday and didn't come through. Now they're saying we'll have it today.
So what does this mean? Well, we were supposed to sign our loan documents tomorrow so we could close next Monday. That appointment has now been cancelled and we're looking at signing on Friday evening, maybe next Monday; and closing on Tuesday or Wednesday. I'm hoping St. Joe will help us out here.
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