The regulators have decided to change the loan process again with new requirements on final HUD statements and disclosures that many in the industry feel will slow the process down by a few weeks. Right now a government backed loan product already averages nearly 6 weeks to close and potentially adding another two on the end could make that process a two month ride.
Borrowers whether using FHA, VA, USDA or Conventional products need to follow the loan officer's explicit instructions and most importantly in a timely fashion. This will become even more important when the new regulations are activated in August.
Conventional loans that currently close in 20-30 days will likely see close times increase to 30-40 days. Government backed products will likely nudge up against that 2 month window. Buyers need to be sure to ask for a long enough closing time to get everything complete and ready for recording.
All too often buyers are sluggish getting the required documentation into the lender and this causes delays that could result in having to ask the seller for an extension. In this robust seller's market asking for an extension could end up in causing the whole transaction to end.
Buyers need to follow the advice of the loan office and act quickly on getting requirements fulfilled so the loan is funded on time and without complications. The added issue is that inspectors, appraisers and other professionals involved in the process are all quite busy right now and they may need several extra days to complete their process.
Buyers simply need to stay on top of the process and respond promptly and they will be in their dream home before long.
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