On a purchase, even B of A prioritizes them so 30 days is not unreasonable. Ask your loan officer, not your agent.
In California it's standard for your financing contingency to be removed by the 17th day of the contract (this can vary, and may be different for you depending on your contract) but even if you don't have an unconditional loan approval at that point, as long as progress is being made I've found that most sellers are OK giving you an extension. Bank of America is great at taking deposits, not a whole lot else... so if your loan has any complications, things may not go too smoothly. If you have removed your financing contingency, and Bank of America cannot come through with the mortgage, then your earnest money deposit would be in jeopardy. Before moving away from Bank of America, I would ask them how confident they are your loan will be approved and you'll be closing on time. Ask them for a breakdown of the remaining steps in the process & long each step is expected to take.
Also keep in mind the volume of Refinance and Home Purchase has dropped.
Congratulations on your decision to purchase a new home!
In my experience, B of A is not able to close a loan within 30 days. I just had two transactions where B of A had TWO new policies implemented within the 30 day period in which delayed our closing by two weeks. I worked my way up the chain to the regional manager, who still was not able to provide any sort of status update on the file, and said he didn't have access to the information. I was guaranteed over and over phone calls with updates so I could relay to my buyer, the listing agent and seller. I never got any of the promised calls.
I will say that B of A did pick up the per diem fees for their two weeks past closing, as closing was delayed purely by B of A dragging their feet.
I would check out the private lender, and ask if you can call previous clients for experiences about their closing timeframes. Additionally, I don' think your realtor is trying to scare you, but rather prevent an issue with your home purchase due to their previous experiences with B of A.
Best of luck in your move, and I hope you enjoy the home you do purchase for years to come.
Happy funding, Rudi
Given your loan parameters, that you're preapproved and are putting down 40 percent of the purchase price as a downpayment on a conventional loan, I have no doubt that B of A can close this deal for you in 30 days. The last two B of A loans my buyers used both closed on time and both of the buyers were using B of A loan representatives directly.
While yes, you can lose a portion of your deposit (the amount you lose is limited by contract to 3 percent--not your entire 40 percent deposit), the truth is that I've yet to meet either a listing agent or a seller who cancels a contract because the buyer needs a few extra days to finalize his/her financing. This does not mean that you should not attempt to close the deal in 30 days, but if there does come a point where you need 5 extra days to close, your agent will probably be able to get that extra time. It might cost you some money (you may need to pay the sellers PITI), but you can negotiate for extra time if you really need it, and can demonstrate to the seller that you're able to close.
Now, of course, if the home you're purchasing is a short sale or a foreclosure property, then getting extensions of time to close the sale can be darned near impossible, so you really do need to stick to the 30 day closing.
Most importantly, however, you need to work with your Realtor and the lender to determine if the loan can close in 30 days. Get your Realtor's opinions on what you'll need to do or if you can extend the time of the contract to allow sufficient time to close the deal. If you know, for example, that it will take 45 days to close escrow, then talk with your Realtor about amending the contract. While I'm sure all of us have had both good and bad experiences with B of A, the truth is that your situation is unique and you need to work with your own agent and lender to determine the best method to address a possible problem in closing in 30 days.
Grace Morioka, SRES
Area Pro Realty-People's Choice
In my experience B of A has been terrible, here is why as Rudy pointed out they do NOT have there underwriter in house and have to ship it out to them, this adds time to getting your final approval also for what ever reason the underwriters come back with and require unusual conditions which adds MORE time and uncertainty. I am right now closing a sale and my buyer is using B of A, and of course we are late on closing,( we are in no danger of losing his deposit or the home all you need to do is extend your loan contigency or closing date, your agent will know what to do) but here is the thing B of A offers the best mortage rates of any of the major lenders thats why my buyer went with them ( even after I like your agent warned them that my past buyers have had great difficulty using B of A ). What you can do is get pre approved with another lender and have them as back up, if it looks like the B of A loan is going south get an extention and switch over or use another lender to begin with and save yourself the grief. If your credit and finances are good the seller will usually grant you an extention ( unless this is an REO, they don't ). It looks like you are a first time home buyer and I know it can be scary, just have back up plans in place and you will get this home.
At your service,
Our loan is conventional loan, not FHA.
Good luck! Try a direct lender with Wells Fargo, they are usually quite excellent in my experience and almost always have docs to the table a few days before closing.
Please see my blog for tips on getting a mortgage
So do answer this question without all the data is hard.
It has been my experience that the banks have been notoriously slow in the process. B of A does have that reputation of being slow.
On the loan your deposit money it depends on how your agent wrote the offer. Ask him/her so you know in your circumstance.
All the best,
Pat Chadwell, Broker
There has been some bad talk about BofA. It is your choice who you get your loan with, your agent is attempting to make it as smooth as possible for you.
As for your contingencies, you build in time lines that you can work with. If you can not meet those time-lines you can ask for an extension, and if the seller grants it then you are still in contract and your contingency still in place. Your agent can explain this to you as well.
All the best to you.
There are a lot of factors that go into making the loan process go smoothly and quickly. Make sure to provide all documention to your loan officer in a timely manner so the process doesn't get delayed. 30 days isn't unreasonable, but you should trust the loan officer is moving quickly and prioritizing your file. Good luck!
First Capital Mortgage
Direct: (310) 434-1718
Cell: (310) 995-0975