You’ve found the perfect place, you have a motivated seller, and you can’t wait – you want to move yesterday!
Your lender is going to be thrilled for you and they will want everything to go smoothly. You will have a part in this. You’ve planned ahead, had a prequalification done, finances are in order – perfect. Let’s keep this moving in the right direction; lenders are faced with regulatory requirements that affect the timeline, very specific dates that have to be adhered to surrounding the Dodd Frank Act (learn more about the Dodd Frank Act by going to SEC.gov). These dates drive when you receive your application disclosures, how you receive them, when a lender can accept an application fee (if applicable), and when you can close to name a few. Just for the record this is for the consumer’s protection, which is always a good thing no matter how fussy it may seem. Since this regulatory requirement is an absolute there are some things to keep in mind when making your offer. You will want to check with your lender to see what their timeline is going to be – don’t short this period. Tips to consider:
- You may lose up to a week while negotiating your offer, additionally; having your home inspection completed may take a few days – more time on the clock. This is important to take into consideration when putting a closing date in your offer. The lender should have a least 35 business days to get you to closing once your offer has been accepted and your home inspection has been completed. This is not to say that the loan won’t be ready sooner but it provides the time needed for everything to fall into place without the lender, appraiser, title Company, and any other third party involved to be rushing to do the great job they want to do for you.
- The contract should have the realtor’s information included: their name/company name, address & phone number, email, and license/ID information.
- Confirming what title company will be agreed upon to use and making sure that your realtor has that information to provide to the lender – this would be the title companies phone number, address, and name/number of the contact person.
- Your lender will be thoroughly reading your contract, however if there is anything special written in the contract that may be unique you will want to confirm the lender is aware of it.
- You will need to provide the lender with a copy of the check(s) you gave for your earnest money deposit.
- If there are any contingency dates within the contract, i.e., appraisal ordered by a specific date, approval date, clear to close date you will want to go over that will your lender – it’s good to make sure everyone is on the same page.
If there is a delay in meeting the closing date or any contingency dates your realtor may need to write an “addendum” to the contract, extending those dates. This may be avoidable when considering your closing date up front.
Again, these are just tips to consider but keeping a realistic timeframe will help keep anxiety within reason!!