Discover a Few of the Ways the Mortgage Closing Process Has Changed Due to COVID-19
Couple signing a document on a meeting at insurance agent office wearing protective gloves and face mask
Few people wonder if the mortgage closing and escrow process has changed – most people just wonder how it has changed. The truth is that it will depend on who your lender is, the type of mortgage you want, your title company, and other factors. However, there are a few changes you can expect to see regardless of the answer to those questions. At Neighborhood Escrow, we are also taking steps to keep our clients and employees safe during these difficult times.
The Home Appraisal Process Has Changed
Pre-COVID, when it was time for an appraiser to value a home, they would enter your home and look around. Now, this is not a good option and many are choosing other options. This might include a drive-by appraisal in which they look at the yard, look through windows, and make a determination, a video tour in which you take them through your home using a smartphone or other camera, or by using desktop research to find comparable properties and other information.
In some cases, lenders are allowing for appraisals to be skipped altogether. This is generally in cases where there is a fairly recent appraisal and/or there is significant equity in the home or a big down payment is being made.
Changes to Employment and Income Verification
It is likely that you will still be required to provide documentation of employment and verification. Lenders will still check your credit when you apply and likely do a last-minute re-check right before the closing. They will likely verify that your income and employment are the same right before the closing. However, if you are receiving unemployment income or furlough pay, you should know that this will not be counted toward you qualifying for the mortgage.
There is some good news, though. Many lenders realize that it can be difficult to get access to paper files, as so many people are working from home, and so they are often accepting phone calls or video chats as evidence that you are working.
Changes to the Escrow Process
There may be changes to notary processes, how you sign documents, and when you come to your escrow company’s office. If you are working with Neighborhood Escrow, we will be very upfront about these changes so you can prepare for them. You should assume that any building you enter for the purposes of will have a mask requirement.
If you have questions about the specific ways Neighborhood Escrow is working to keep our employees and our clients safe, feel free to contact us at 310-378-2456 at your earliest convenience.
