What types of problems typically cause closing delays?
This varies from one transaction to another, but the typical closing delays relate to a failure to satisfy loan conditions quickly or a buyer’s delay in setting up their homeowner’s insurance. The loan condition that most frequently causes problems in the end is a borrower’s lack of documentation regarding the source of funds for the down payment and closing costs. Lenders want to see a paper trail of all funds transferred into escrow, and unless a borrower takes the time to document the liquidation, withdrawal and transfer of funds along the way, they must scramble at the end of the transaction to re-create their trail. Lenders frequently fail to inform borrowers about the importance of keeping good records during the loan process. If the property in question is new construction, building and completion delays frequently occur depending upon weather delays, contractor and sub-contractor problems and the builder/developer involved.
This varies from one transaction to another, but the typical closing delays relate to a failure to satisfy loan conditions quickly or a buyer’s delay in setting up their homeowner’s insurance. The loan condition that most frequently causes problems in the end is a borrowers lack of documentation regarding the source of funds for the down payment and closing costs. Lenders want to see a paper trail of all funds transferred into escrow, and unless a borrower takes the time to document the liquidation, withdrawal and transfer of funds along the way, they must scramble at the end of the transaction to re-create their trail. Lenders are frequently remiss in communicating the importance of keeping good records during the escrow process.
This varies from one transaction to another, but the typical closing delays relate to a failure to satisfy loan conditions quickly or a buyer’s delay in setting up their homeowner’s insurance. The loan condition that most frequently causes problems in the end is a borrowers lack of documentation regarding the source of funds for the down payment and closing costs. Lenders want to see a paper trail of all funds transferred into escrow, and unless a borrower takes the time to document the liquidation, withdrawal and transfer of funds along the way, they must scramble at the end of the transaction to re-create their trail. Lenders are frequently remiss in communicating the importance of keeping good records during the escrow process. If the property in question is new construction, building and completion delays frequently occur depending upon weather delays, contractor and sub-contractor problems and the builder/developer involved.
