speed to close...is this too good to be true? (insurance, credit report)

[arielmina]

I am getting a mortgage for a new home, through the builder's mortgage company (a regional bank). They have told me I could potentially close in 2.5 weeks, having just started the process on Friday. Its a conventional 30 yr fixed, and I have good credit, stable employment etc. Is this really possible in this day and age?? Seems too good to be true...

[chet everett]

What is "too good" about it? They want to get you to "sign on the bottom line" ASAP and they have the resources to make that happen...

Personally I would a BIT worried that they are in a world of hurt and want to get every last place sold as fast as they can, but maybe they sense that you want things to happen quickly and simply more than happy to accommodate...

[jshlee]

From my experience so far with a lender that has been fairly ahead of the ball on the closing process...

It’s Friday and you have signed the contract already, and you have been introduced to the lender you will be working with. They give you a laundry list of documents to start sending over.

Say, if you can get all your documents (signed contracts, W-2, bank statements, photo ID, credit report, gift documentation if you got help, copy of your 1040, rate lock, disclosure forms, etc...) in the first or second day on Monday or Tuesday. And at the same time, an appraisal, title search, title insurance, survey, credit report, FICO score, and homeowner's insurance has been initiated on Friday.

- It will take a week for the underwriters to issue a commitment letter to your attorney since they will most likely ask for additional documentation on anything that doesn’t add up on your income or credit, so during the work week, you are busy sending documentation.
- It will take a few days for the title search to be expedited.
- It will take a few days for the appraisal to be expedited.
- Survey has prolly been already done by the builder, but takes a few days to get expedited.
- Title insurance is typically your attorney or your responsibility. Few days to shop and lock.
- Homeowner's insurance is your responsibility. Few days to shop and lock.

Now that everything is pretty much settled (say the Friday after), now your attorney, the bank attorney, seller attorney, and title company needs to hash things out. I don't know how it can be done in less then a week but maybe where you are buying, alot of red tape can be cut... but let's say 1 week.

So it’s been two weeks, and everyone involved sets an aggressive closing date. When you add it all up... yeah, I can see how they can tell you 2.5 weeks.

In reality, unless you already went through the process with a lender before, the bottleneck will be on you to produce all the documentation. So each day you don’t submit all your documentation, is a day lost. Also, lenders these days are red flagging more and more these days, but a regional lender might be a lot less painful.

Another bottleneck if your ability to get a component attorney that is willing and able to close that fast, and be able to obtain title insurance and homeowner's insurance. It's possible the developer has something lined up already for you, but then I am not sure if that served your best interest.

[SIZE=3]In reality, I think it can happen in 30 days if there are no red flags, or hold ups. Might shave off a few days since this is a development and there isn’t the resale aspect going on.[/SIZE]

[arielmina]

thanks - not worried about that and yes they are trying to speed it up because we're closing on our (sold) house on Oct 13.

[arielmina]

Originally Posted by jshlee

From my experience so far with a lender that has been fairly ahead of the ball on the closing process...

It’s Friday and you have signed the contract already, and you have been introduced to the lender you will be working with. They give you a laundry list of documents to start sending over.

Say, if you can get all your documents (signed contracts, W-2, bank statements, photo ID, credit report, gift documentation if you got help, copy of your 1040, rate lock, disclosure forms, etc...) in the first or second day on Monday or Tuesday. And at the same time, an appraisal, title search, title insurance, survey, credit report, FICO score, and homeowner's insurance has been initiated on Friday.

- It will take a week for the underwriters to issue a commitment letter to your attorney since they will most likely ask for additional documentation on anything that doesn’t add up on your income or credit, so during the work week, you are busy sending documentation.
- It will take a few days for the title search to be expedited.
- It will take a few days for the appraisal to be expedited.
- Survey has prolly been already done by the builder, but takes a few days to get expedited.
- Title insurance is typically your attorney or your responsibility. Few days to shop and lock.
- Homeowner's insurance is your responsibility. Few days to shop and lock.

Now that everything is pretty much settled (say the Friday after), now your attorney, the bank attorney, seller attorney, and title company needs to hash things out. I don't know how it can be done in less then a week but maybe where you are buying, alot of red tape can be cut... but let's say 1 week.

So it’s been two weeks, and everyone involved sets an aggressive closing date. When you add it all up... yeah, I can see how they can tell you 2.5 weeks.

In reality, unless you already went through the process with a lender before, the bottleneck will be on you to produce all the documentation. So each day you don’t submit all your documentation, is a day lost. Also, lenders these days are red flagging more and more these days, but a regional lender might be a lot less painful.

Another bottleneck if your ability to get a component attorney that is willing and able to close that fast, and be able to obtain title insurance and homeowner's insurance. It's possible the developer has something lined up already for you, but then I am not sure if that served your best interest.

[SIZE=3]In reality, I think it can happen in 30 days if there are no red flags, or hold ups. Might shave off a few days since this is a development and there isn’t the resale aspect going on.[/SIZE]

Thanks, I am one of those incredibly organized people and I already had all that documentation to the lender by Friday morning at 9:00 AM. Credit scores are pulled. I have a call with the lender tomorrow morning to go over any questions on all the documentation. so hopefully it will happen

[jshlee]

Original Poster,

Gotta hand it to you. I thought I was fairly organized, but to submit everything the morning of is pretty impressive. I got it down to 2 full days.

Now it's a matter of how hard of a time the underwriters will give you. If you past litany test, it's pretty much smooth sailing in terms of expediting the process. No one should be holding up the process.