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Old 04-30-2015, 07:39 PM
 
86 posts, read 61,715 times
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We are currently in a 60 day escrow with the sellers and our current closing date is June 12. We decided to go with a 60 day escrow because the sellers were not interested in a contingency and were confident they could find something within that timeframe. We were informed that they recently found a new place and had their offer accepted. Problem is that they now want to close in 8 days (lol) when we haven't even been approved for the mortgage yet. (We waived the loan contingency a while back.)

Obviously that timeline isn't going to work, but we're thinking about moving the closing date up to late May or so because it would give us more time to move/do proper renovations. Our concern is that we only have a conditional approval from Citi and who knows when they'll get around to the final approval? (There is also a small part of me that expects a problem with getting approved at all, but since we've already waived the loan contingency we're screwed either way if it's denied...)

Appraisal's already been done, although underwriter hasn't seen it yet. A couple of similar comps in area that have recently sold around purchase price (gated community, same HOA), and the unit we're purchasing is in very good condition. The other documents requested along with the conditional approval have already been submitted.

If anyone has experience with "conditional approvals" and 1) whether that means anything and 2) how long it took a big bank to act on it, I would love to hear them! I'm just not sure moving up the closing date 3 weeks would be a good idea without approval in hand, or whether it's something that happens quite often.
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Old 05-07-2015, 11:14 AM
 
Location: New York
2,251 posts, read 4,160,232 times
Reputation: 1607
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My $00.02

You entering into a 60 day escrow? My take is you entered into a purchase agreement with a closing date contingency. You gave a deposit (earnest money) that was deposited into an escrow account contingent on closing by June 12th.

The sellers now know you are serious after you paid for the appraisal. They now want to close in eight days. At this point the governing document is the purchase agreement with the terms of the transaction. It would be up to you if your wanted to accelerate the closing. Which you can't because you don't have the loan yet.
  • A simple solution could be since the sellers want to move the closing date up and leave the property. Do a "Rent Back Contingency" with them. Temporarily the seller would be the landlord and you are the tenant. You move into the property like you are renting, until your closing.
  • This could be a benefit to you moving in and trying out the property. What if you had a problem with a neighbor, or found something wrong with the construction or condition.
  • Once you have the closing the property is yours. Doing a rent back, you have an exit strategy if any major problems come up
Your question about "Conditional Approvals" means you are preapproved for a loan based on Credit score or Income. Preclosing conditions comes after underwriting has reviewed your application, credit report and the appraisal. The underwriter set conditions which need to met. After title search comes back and there is a post closing underwriter review (contingent on preclosing conditions satisfied and satisfaction of any new conditions), you are clear to close.

An observation - another property's (Apartments -Condos -Townhouses?) recently sold around purchase price (gated community, same HOA). In my experience it is easier to get into (buy) these types of homes then exiting (selling). When you do sell may have to reduce your selling price before your property is sold. Since similar "gated" properties are based near the same value. This could have an impact (how hard it will be) to move up in the future.

Food for thought - what if you closed after June 12th? Knowing the Fed adjusts the interest rates to control inflation twice a year on June 15 and Nov 15th. History show's a month before rates edge up, and edge down right after. If interest rates fall after June 12th, you could get a lower interest rate (a lower payment).

It's your money - good luck





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Last edited by Modification Specialist; 05-07-2015 at 12:17 PM..
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Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

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