Financing in 95051>Question Details

Pq, Home Buyer in 95051

Can Bank of America close a loan in 30 days? I was told that they cannot, is it true?

Asked by Pq, 95051 Sat Oct 1, 2011

We have been preapproved by Bank of America. Recently my agent refers us a private lender and scares us by saying that BOA cannot close a loan in 30 days. We do not want to lose our deposit and lose out on the house.
If the bank cannot close the loan, will we lose our deposit money? do we have to pay any other penalty?

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Thanks everyone for your advice. Fortunately, BOA was able to close the loan in 30days and they gave us a very competitive rate and discount.
2 votes Thank Flag Link Sun Nov 13, 2011
Thanks for the follow-up!
Flag Mon Nov 23, 2015
That is GREAT...
Flag Thu Jul 10, 2014
Don't be fooled by the IN HOUSE underwriting sales pitch. This is 2011 and we have things called phones, fax machines, email, eDocs and a variety of other technology that makes it irrelevant if the underwriter is in the next room or in another state. This is pure hype and those that pitch it should be ashamed. There is NO BENEFIT to an in house underwriter over one elsewhere other that the ability to have a face to face screaming match with them when they inevitably ask you for a stupid condition.

On a purchase, even B of A prioritizes them so 30 days is not unreasonable. Ask your loan officer, not your agent.
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1 vote Thank Flag Link Sun Oct 2, 2011
I wouldn't trust BofA to handle a purchase for anyone, even a family member of mine, as the only time they did they royally messed it up - said they were approved up until about 1 week before closing when they declined the loan because the co-borrower couldn't verify her prior employment history in China (duh, didn't they think of that from the beginning?). Fortunately the seller mandated the use of BofA in that situation in order to give my family member a closing cost credit, and so because they used the seller's choice of lender the seller gave them their earnest money back after they couldn't get approved. BofA doesn't do a very thorough job with their pre-approvals.

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.
1 vote Thank Flag Link Sat Oct 1, 2011
I've worked on deals where BofA closed within 30 days, so yes they can.
0 votes Thank Flag Link Thu Dec 18, 2014
Since, 2011, they have really turned around and can definitely do so.

Also keep in mind the volume of Refinance and Home Purchase has dropped.

Best regards
Perry Mistry
0 votes Thank Flag Link Tue Dec 16, 2014
yes they can.
Do what you think is right.
0 votes Thank Flag Link Sat Dec 6, 2014
Glad to hear it all worked out for you.
0 votes Thank Flag Link Fri Nov 21, 2014
My sister in law is looking at a delays on her loan fro BOA. I say, run, do 't walk away from BOA!
0 votes Thank Flag Link Sun Nov 16, 2014
I don't know about BOA but i am waiting on Chase to close my escrow and it has been 20 days past due. I would never use Chase again for my mortgage. I am so frustrated.
0 votes Thank Flag Link Thu Jul 10, 2014
I know a BofA rep who can close in 15 days.
0 votes Thank Flag Link Sun Jun 23, 2013
It is extremely improbable that BOA can close a lona in 30 days. Based on my own experiences as a Realtor, I haven't seen them close a single loan on time (42-45 day period) in almost 7 years. BOA should have been shut down years ago by the Federal Government and you would do well to avoid doing business with them.
0 votes Thank Flag Link Thu Jun 20, 2013
NO!!!!!!!!! BOA can NOT close a home loan in 30 days or 60 days. We are at day 69 with 4 contract extensions!! I expect to lose our house because the seller wants to sell their home and the bank can't seem to get it together. We had a contingency on financing on our contract. So I hope we will get our deposit back. This entire thing has been a NIGHTMARE - so much BS from BOA I don't even want the new home at this point. Every day it's something new - RUN..... don't walk.....away from BOA as fast as you can. Go any where - just NOT BOA. Good Luck...I know this question was posted 10/11 but if this helps anyone then that is great. I wish someone had told us about BOA before we began this nightmare.
0 votes Thank Flag Link Thu Jun 20, 2013
perhaps this was more of an issue with your credit not BoA considering you had a financing contingency, Just a thought.
Flag Mon Apr 27, 2015
Yes, BofA CAN easily close in 30days. I know a BofA rep who has consistently closed fast for my buyers and gives them good rates.
0 votes Thank Flag Link Wed Nov 16, 2011
That is great news, I wish my buyers had a similar experience to yours.
Good luck with your new home.
At your service,
0 votes Thank Flag Link Wed Nov 16, 2011
Hi Pq

Good for you and congrats.

Glad also to hear they were competitive.…

Best regards
0 votes Thank Flag Link Tue Nov 15, 2011
That is good news. Congratulations! I am glad to see that everything worked out fine.
0 votes Thank Flag Link Sun Nov 13, 2011
PQ....BofA can close in 30 days, will they, that's another question. My personal experience with B of A lately has not been that good.......they have mortgage representatives in the bank, they also have a B of A mortgage's always better to deal directly with a mortgage officer than someone in a branch have a much better shot of closing when dealing with the mortgage offices.
0 votes Thank Flag Link Wed Oct 5, 2011

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.
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0 votes Thank Flag Link Wed Oct 5, 2011
If this is a great concern see if the seller will allow a longer escrow. If they are kind and say yes, you can check how much more in fees a longer rate lock would cost with BAC .

Happy funding, Rudi
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0 votes Thank Flag Link Mon Oct 3, 2011
Hi Pq and thanks for your post.

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.

Good luck!

Grace Morioka, SRES
Area Pro Realty-People's Choice
0 votes Thank Flag Link Sun Oct 2, 2011
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,
DRE# 01397256
0 votes Thank Flag Link Sun Oct 2, 2011
Hi, Pq. Your realtor is correct: On the whole, BOA is not known for closing loans within 30 days. However, most direct mortgage brokers or coorespondent lenders (since mortgages are all they do) should be able to easily close the transaction within 30 days. Best way to insure this is to make certain their processing, underwriting, and closing departments are IN-HOUSE. Ours are and as aresult we ourselves typically close most loans within 15-30 days! So the question now is do you have time to switch? Good luck.
0 votes Thank Flag Link Sun Oct 2, 2011
If your down payment is yours, your income is easy to calculate, and your credit is excellent... then you probably will be able to close on time with BofA. If there is anything slightly difficult about your situation it may take them longer than they initially say. It's up to you to decide which route you want to go, no one knows the correct answer.
0 votes Thank Flag Link Sat Oct 1, 2011
Thank you everyone for your advices. To clarify, we have been approved by BOA for the loan. The BOA loan officer is confident that he can close it within 30 days. My agent however does not think so. He refers us to a private mortgage broker that he works with. He thinks that BOA has been slow in closing loan. Our down payment is 40% of the price and we have a good income source and a good credit score. All document has been submitted. The deadline for contingency removal is 10/14/2011. According to the contract, "buyer may not use buyer's inability for obtaining alternative financing as an excuse to not perform buyer's obligations specified in the contract". The contract is not clear. If we breach the contract after removing all contingency, we will lose our deposit. If we are unable to perform (?), we are liable for consequential damages.
Our loan is conventional loan, not FHA.
thanks again,
0 votes Thank Flag Link Sat Oct 1, 2011
I have never had good experiences with bank of america. They always take longer than they should, and I have never gotten to the settlement table on time when they are doing the financing!

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.
0 votes Thank Flag Link Sat Oct 1, 2011
If it is a conventional mortgage it can be and is often done, if it is a fha loan there is vert little chance. There are alot of variables in answering as it depends what type of loan you are getting, you should ask your loan officer, they have teh only answer that counts,…

Please see my blog for tips on getting a mortgage
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0 votes Thank Flag Link Sat Oct 1, 2011
Preapproved by B of A might not mean a lot. Did you supply all your documents to them? I had a client get a B of A approval letter and she had not even given any bank statements and she had not supplied her pay check stubs. Meaning the bank does not have a true picture of the scene. This can happen with any number of lenders mind you if they are not doing their job.

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
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0 votes Thank Flag Link Sat Oct 1, 2011
BofA has closed loans on my transactions in 30 days but that timeline is based upon the cooperation of the borrower providing information and documentation to the loan officer and underwriting in a timely manner. If your agent writes in a loan contingency into your purchase contract and you do not remove that contingency, you will not lose your deposit if your loan does not go through. If your loan officer (BofA or Otherwise) does not give you permission to remove your loan contingency in writing, DO NOT sign the contingency removal.
0 votes Thank Flag Link Sat Oct 1, 2011
It depends on how difficult your file will be. Your agent knows that by going with a mortgage broker they can have a complete file ready to submit to any number off lenders, and if the mortgage broker is also a direct lender it offers more flexibility.

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.
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0 votes Thank Flag Link Sat Oct 1, 2011
Hello PQ,

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!

Michael Abram
First Capital Mortgage
NMLS #235060
Direct: (310) 434-1718
Cell: (310) 995-0975
0 votes Thank Flag Link Sat Oct 1, 2011
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