May sell a home-20% down conv financing and buyers say they can close in 10 days. Is that realistic?

Asked by Idabble, Saint Paul, MN Sat Oct 29, 2011

The home has well and septic and no power and some mold. I understand they would have to do an appraisal and also get the power on but the buyer is well qualified. Can they close that quickly with a loan?

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Mary Jo Quay, Agent, Burnsville, MN
Sat Oct 29, 2011
You have several issues going on that would hold up a closing. The first would be well and septic. Mn law requires that they be up to code, the buyer would have to have them inspected. If they aren't up to code, that would brings things to a standstill until they are negotiated.
Banks hate mold, may require mitigation.

Buyers dont' always understand loans, and they may be misinformed. Most investment loans require 20% down, and take a minimum of 3 weeks to close. An appraisal can be done in a few days, title only takes a couple days. However, we are all at the mercy of underwriters, and they can drag things out for weeks.

I wouldn't pack up just yet.

Talk to the loan officer. It is important that you have proof of the buyer's qualification, and that the loan officer gives you a realistic timeline.
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Joel Friday, Agent, Coon Rapids, MN
Sat Oct 29, 2011
As the others have said this would be a stretch. However, if everyone jumps on their tasks right away you could be close to ready in 10 days. The real question here is why 10 days? Will they walk if it takes 30 days? If not, most tasks can be done in parallel, though that might cost more as the septic failing might kill the deal and the appraisal has already been paid for. Work through the scenarios with your agent and make sure everyone is ok with potential delays. Shoot for 10 and expect 30.
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Annette Law…, Agent, Palm Harbor, FL
Sat Oct 29, 2011
20% down - Conv financing.
Home has mold, no power, septic..
The lender will want third party verification of the quality of this property. NO WAY 10 Days will Work unless there or other elements at play that have not been revealed.

So, the buyer is overly ambitious. Plan on 45 days and proceed. Make sure your agent is prepared to monitor both sides. The buyer agent may be distracted by other issues.
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Rick Thram, Agent, Savage, MN
Sat Oct 29, 2011
Have your agent talk with the loan officer who's providing the loan for these buyers...there are new rules that lenders must comply with regarding disclosures to buyers that would generally make it impossible to close in ten days. Additionally, if there's a well and septic test associated with the purchase, those can take some time to accomplish. In my opinion, you've got some real concerns that could delay any closing, much less one that's supposed to transpire in less than two weeks.
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Walter 'Skip'…, Agent, Brea, CA
Sat Oct 29, 2011
Hi Idabble,
It is doable for a cash buyer. I would be surprised if it could close that fast with a conventional loan involved.
Good luck,
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Scott Godzyk, Agent, Manchester, NH
Sat Oct 29, 2011
It is extremely unrealistic, if they are getting a loan they will need an appriasal, power, heat and water needs to be on and an appraisal has to be ordered then completed. due to teh large amount of refinances, appraisals are taking 10-14 days alone. depending on the bank well and septic may need to be tested, that should be asked up front and if teh mokd is a hazzard, they could want that removed as well even though it is a conventional loan, if it is a hazzard, it will affect value.
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