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Guitar, Home Buyer in Indianapolis, IN

Can the bank postpone a closing date because they are "backed up"?

Asked by Guitar, Indianapolis, IN Fri Sep 24, 2010

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Yes, It can and does happen from time to time. It's best if your Realtor and Mortgge rep can work together so that the agent has good idea how much time the lender will take to get the loan through underwriing and 'clear to close'. This usually happens less often if you use a local lender rather than a lender you found on the internet that doesn't have a local branch. Your agent can probably refer you to a lender who tends to get things done on time.
2 votes Thank Flag Link Mon Feb 11, 2013
Loans are taking a lot longer to process and underwrite now than they have in many years, so if the agent who wrote your contract put in a closing date that was too soon, the bank can't be held at fault. 30 day closings were common in years past where everything was done with very little documentation. Underwriters only looked at appraisals to see if they came in at value, not how they were actually done, and what comps were used. They took 1 pay stub, or no paystub at all sometimes. They never looked at tax returns, or pulled them from the IRS, now they do both. There are numerous quality control steps that they have to go through to verify that no one involved in the transaction is on any watch list of any kind. That is just to name a few things, so yes, they can postpone a closing date because they are backed up.
1 vote Thank Flag Link Tue Nov 2, 2010
yes indeed, this happens off and on. Just like title companies may be backed up with closings and can't get you in for several days or week, especially near the end of the month.
0 votes Thank Flag Link Tue Nov 2, 2010
It happens from time to time.
0 votes Thank Flag Link Fri Sep 24, 2010
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