Your Escrow Closing Date is Not Set in Stone: Learn What Can Change the Date
Every transaction begins with a “Closing Date,” which is the day on which all parties hope to wrap up, close, and transfer property and money. At the moment the offer is written by the buyer and approved by the seller, all real estate brokers should discuss with their clients whether we will be able to meet that deadline on time. It is simpler for the parties to comprehend that there are numerous circumstances that could affect this date if they are aware of what the entire escrow process comprises.
The way closing dates are estimated has changed over the years
It was arbitrarily established many years ago that 30 days was a suitable amount of time to close a sale transaction that entailed a new loan. Years have passed since then. It took a lot longer to get a loan approved after the market crashed in 2007 and the pendulum of the lenders’ underwriting guidelines swung from being highly loose to being quite stringent. Although the pendulum has now stabilized, it is still very difficult to have a loan accepted, documentation set up, and funding within a 30-day window.
The entire real estate, loan, title, and escrow procedure is highly human in nature, thus people are actually in charge of it. The process is only as good as the people involved because this is a “people” industry. To ensure that the transaction closes on schedule, the Seller and the Buyer look at each other. The Buyer also looks to the loan officer and the escrow officer, who in turn look to the lender’s processor and funder.
The seller, the buyer, the real estate agents, the loan officers, and the escrow officer can all be identified. The Lender and its employees, however, are completely nameless. The likelihood of the Lender employees working remotely and possibly even in a different time zone is greater than 70%.
We understand the importance of a closing date
How can we influence what other people do or don’t do? While we who are deeply involved in the deal may be quite concerned about a closing date that is approaching, other people might not even be aware of its seriousness. They have a lot of transactions on their desks, all of which are undoubtedly labelled “urgent, rush, rush”!
The loss of control grows if there are outside parties involved. What about contractors who need to perform repairs, like termite contractors? What about lenders who issue payoff numbers but put it off since the loan was sold? What about delays brought on by movers whose schedules are full?
The best thing you can do is ensure that you are working with a qualified escrow company that is moving things along and that you are providing all the documentation required. At Neighborhood Escrow, we work tirelessly to get our clients’ transactions closed as quickly as possible.