Home > Mortgages > It all boils down to a smooth and timely closing

No matter what was said at first, rates, fees or other loan disclosures, in the end, it boils down to a smooth and timely closing. A lender and I recently had a cordial discussion about this. It couldn't be more true as I reflect on some challenged closings in the past.

A buyer who purchased a short sale property had perfect 740 credit score at the time when the offer was submitted to the bank. Upon approval of the short sale some 120 days later, the buyer's credit took a 150-point nose dive. The failure to communicate to the daughter's student loan during the 120-day period that he had co-signed several years ago was the culprit. What was originally a "good" lender who charges a fair rate and low fees, now becomes - I'm willing to pay more or take on a higher interest rate. Just let the loan go through and please don't stop me from purchasing my dream retirement home.

A buyer who originally discussed the minimum down payment for the loan and towards the end, said I just want the house closed. I'll do a 20% down if I have to. Just get me closed.

I could repeat so many stories such as these. What was the original discussion were about interest rates and closing costs almost always focuses on ensuring a smooth and timely closing when promised in the end. As a homeowner myself, I understand that buyers always want a "good deal" be it on a home or a mortgage. It's always about numbers and never about ensuring closing MUST happen in a timely manner.

With new mortgage industry changes, it has never become more crucial to go as far as a Buyer could go on getting financing straightened out. An approval on the file, just awaiting a property address for final approval.

For a Buyer, your offer to the Seller is stronger and in uncertain mortgage times such as these, it could be more big money savings to you in the end. In a multiple offer situation, your offer stands much stronger. I could see how much less disruption this could be had Buyers gone All the way in their financing.

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