There are two methods to get around this: either put down a larger initial deposit (which will result in a smaller loan amount) or negotiate a lower purchase price with the seller. In any case, a poor assessment will make the procedure more time-consuming. Because of the backlog of work for appraisers, real estate agent, Hilary Farnum-Fasth has seen a delay in the process of appraising properties in the Northwest Illinois market she serves. She has seen customers pay a premium for a rapid evaluation, which may complete the task in a matter of days and lessen the impact of this issue.
Ensure that your loan is accepted
The most helpful action that purchasers can do is to respond as quickly as they can to any demands that arise from the lender or the underwriter.
You will be in a much better position to get your real mortgage authorized if you have previously been pre-approved for a mortgage, and this second stage will move considerably more quickly since all of the necessary documentation has already been turned in (assuming your pre-approval letter is still valid). The underwriting procedure is now the bottleneck that causes delays. An underwriter will do a very thorough investigation of your financial situation and credit history, in addition to examining the specifics of the property, in order to ensure that everything is in order.
Average time: 3 days to 3 weeks
Underwriting may be completed in as little as two to three days if all of your documentation is in order and there are no big warning signs raised throughout the process. On the other hand, it may take more than a week for purchasers whose assets or transactions are more involved. Because of this, Julie Bombardo of Corcoran Premier Realty in Chicago, Illinois emphasizes how important it is to collaborate with a local lender. In general, the best thing that purchasers can do is to respond as quickly and thoroughly as they can to any demands that come from the lender or the underwriter.
Finalize the transaction
Make it a point to inquire about the possibility of a distant closure. You have completed the race successfully! At the stage in the process known as the “home closing,” all of the parties involved in the transaction get together to sign all of the necessary paperwork and formally switch ownership of the property. In the past, it was common practice to complete and sign all of the necessary documentation in the presence of real estate agents, lawyers, and a lender’s representative.
Time range: two days to one week on average
However, as of recently, in many states, closings are now able to be carried out remotely, which helps save time. “Everything is done electronically,” adds Farnum-Fasth, who is familiar with the region of Northwest Florida. Everything is handled via electronic closure businesses or through FedEx at this point.