Financing in San Francisco>Question Details

Berrymef, Home Buyer in San Diego County, CA

signed loan documents on wed and were supposed to fund on fri. now we are being told that wont fund until mon and wont get keys until wed too long?

Asked by Berrymef, San Diego County, CA Fri Aug 20, 2010

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Normally the lender funds the day before it records, so It's actually better for you that it funds on Monday since you won't be paying PITI over the weekend for a place you don't own. We routinely write in, "Escrow shall not occur on a Monday," into our contracts to avoid Friday funding and Monday closing.

In the scenario you state the deal should record on Tuesday and you should get the keys then unless something else is written into the contract. Talk with your agent/broker.

Best Regards,

Lance King/Owner-Managing Broker
DRE# 01384425
1 vote Thank Flag Link Fri Aug 20, 2010
You should get keys when it records. The way it works in San Francisco is that we have a rule that says it can't fund and record on the same day. So if it funds on Minday it should record on Tuesday and you should get the keys on Tuesday, the day it records. Ask your agent what would be the hold upif it records on Tuesday.
0 votes Thank Flag Link Fri Aug 20, 2010
You will get the keys when it records. You may want to ask the Escrow Officer why the recording won't happen
until Wed. I am sure there is a explanation.

Bev Smucha
Soval Realty
0 votes Thank Flag Link Fri Aug 20, 2010
I can only agree with the many CA agent comments. The timeframe appears to be correct and maybe other delays caused the Wednesday signing. There are so many Re-Fi's going on right now, and the extra dilligence of underwriters even if they have "table funding". I hope you enjoy your new home when you get to move in.
0 votes Thank Flag Link Fri Aug 20, 2010
Hi, You have gotten a number of answers already to help you. I do think it is important the buyers and sellers understand and expect delays with transactions due to the immense amount of coordination necessary to fund and close. Lenders are typically the cause for the delays in the current lending environment. It is best not to hinge your moving timelines firmly on an expected close date, and to have your planning with the expectations of these possible delays.
Congrats on your soon to be successful closing!
Jack Murray
0 votes Thank Flag Link Fri Aug 20, 2010
If you signed documents at end of the day Wednesday, then the title company and the lender may not have enough time to process the paperwork, fund Thursday and record the sale on Friday so that you can get the keys and move in that weekend.

As such, they may advising you to not fund on Friday and to wait until Monday so that you can avoid paying interest for the weekend when the property isn't yours yet.

If they do fund on Monday, typically it can record the following day unless there are specific time frames (days/hours) where recording is done (or not).

But two business days in between funding and recording does seem too long for most buyers anxious to move in.
0 votes Thank Flag Link Fri Aug 20, 2010
Hi Berrymef,

Once the Underwriter receives the loan documents package from escrow it typically takes 48 hours for the underwriter to verify that all documents have been properly initialled and signed. This explains the scheduled funding for Monday. I know that in some counties you can fund the loan and record the deed in the same day. This could save you some time and enable you to get the keys a little sooner. I would have your Agent check with escrow to see if special funding/recording is possible. Lastly, when did you specify possession to take place in your offer? If the home is already vacant then maybe your Agent can approach the Listing Agent and negotiate a change in possession terms allowing you to take possession on the same day that the deed has recorded. Good luck!

0 votes Thank Flag Link Fri Aug 20, 2010
I don't understand why you are on Trulia and not one the phone with the lender and you (well paid) real estate agent. Get them moving!
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0 votes Thank Flag Link Fri Aug 20, 2010
That doesn't seem unusual, but non the less, frustrating. What seems unusual to me, is that you would have been told that you could have closed that soon after signing your loan docs. Most loans I have closed on have had a 4-5 day delay between signing and closing, unless they were a 'table-funder'. In any case now a days, lenders are taking a few days to review the docs prior to funding.

It should actually work out better for you this way, since funding on Friday would have meant closing on Monday. You would have paid interest over the weekend and not gotten the keys until Monday.

Good luck in your new home.
Web Reference:
0 votes Thank Flag Link Fri Aug 20, 2010
Hey Berrymef -

Signing on Wednesday and expecting to fund on Friday was not realistic so you were over-promised. Low interest rates have lenders backed up with purchase and refi files. All of them are taking longer at each stage of the loan process. Hang in ... you're almost there!


0 votes Thank Flag Link Fri Aug 20, 2010
Most people will avoid a Friday funding. Since homes normally record on the day after funding, people try and avoid a Friday funding because of the weekend.
If you fund Friday, and then record Monday, it means the buyer is paying interest for 2 days on a property that is not even theirs yet. Most people do not like that.
The only unusual thing in your question is that it seems like you are saying it will fund Monday, and then record on Wednesday. Like I said, you usually record the day after funding, and that would be Tuesday. Though that may be a local custom, and they just do it that way is Southern California as opposed to the way we do it here up North.

In any case, it is closing soon, so congratulations.
0 votes Thank Flag Link Fri Aug 20, 2010
This isn't too unusual in today's rapidly changing real estate market. So, as the fictional character Forest Gump might say... " happens..." Not that this is any consolation, but so long as you didn't create the delay, you won't be unduly penalized (by the seller or anyone else other than, perhaps, the screw up this creates with the move, I would imagine). Good luck -- and make those calls, they say the squeeky wheel gets the oil.
0 votes Thank Flag Link Fri Aug 20, 2010
Many lenders can take a few days to fund. Nowadays, the funding process has much more stringent quality control measures which adds to the process. Also, many lenders are working with a high loan volume and not enough staffing to accommodate the increase in business. If you're funding on Monday the loan should record at the latest on the next business day.
0 votes Thank Flag Link Fri Aug 20, 2010
Normally there's no wait for funding on purchase loan. They fund the same day or next day. Did they tell you what the reason is for 2 delays?

Elena Ollick
Amerivest Realty
Faith Home Loans
skype: napleshomes
Get Pre-Approved:
0 votes Thank Flag Link Fri Aug 20, 2010
No, it's not too long; it sounds about right. Turn times to review signed loan docs are typically 48-72 hours so this is probably just a case of over-optimism on the part of the person that originally told you otherwise.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Fri Aug 20, 2010
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