The Mortgage Brothers Show

How Fast is Too Fast to Close a Home Loan to Purchase a House?

September 08, 2020 Eddie and Tom Knoell Episode 60
The Mortgage Brothers Show
How Fast is Too Fast to Close a Home Loan to Purchase a House?
Chapters
The Mortgage Brothers Show
How Fast is Too Fast to Close a Home Loan to Purchase a House?
Sep 08, 2020 Episode 60
Eddie and Tom Knoell

How Fast is Too Fast to Close a Home Loan to Purchase a House? 

What is defined as a Fast Closing? On a purchase transaction closing in 25 days or less would be considered a very fast closing. And we recommend strongly that buyers avoid closing any sooner than 25 days from the start of a contract. 

Why shouldn’t a buyer try to close fast? What can go wrong?

·      Buyer stress is typically higher with short closings…everything is a RUSH.

·      Due Diligence on the house is rushed and often important issues are overlooked

·      Paperwork is RUSHED. As a result human error on paperwork is more likely to be an issue with RUSHED closings. Buyers will have to be very flexible with the process and since they will have little time to review paperwork and review what they are signing. Extremely detailed and Picky borrowers  will not be a good candidate for Fast closings.

·      Appraisal order is RUSHED, E-signings is RUSHED

·      The entire purchase transaction can leave the buyer with a bad taste in their mouth about their purchase which can lead to buyer remorse. 

Exceptions: Cash buyers and Investors can close as fast as they want, we still recommend buyers be cautious and do their due diligence. 

 

Where does the pressure to close early come from? Answer is: primarily from real estate agents. Why is that? They typically are motivated to differentiate their buyer’s offer from other offers, they are trying to make their buyer’s offers more attractive. 

What if a buyer NEEDS to close early, Can we do it? Answer is: Yes, but we want to make sure we set realistic expectations from the very beginning. Buyers need to be uncomplicated (cannot have layers and layers of income, assets, moving funds to here and there, etc.) and buyers need to be a bit tech savvy…we don’t want buyers sending us documentation through their phone camera images, low resolution docs…etc. Buyers need to know how to access their documents as .pdf files for example. Buyers will have to be very flexible with the process and since they will have little time to review paperwork and review what they are signing. Extremely detailed and Picky borrowers  will not be a good candidate for Fast closings. 
 

What is the recommended time needed to close a home purchase loan? 

Answer: 30 days

 

Show Notes

How Fast is Too Fast to Close a Home Loan to Purchase a House? 

What is defined as a Fast Closing? On a purchase transaction closing in 25 days or less would be considered a very fast closing. And we recommend strongly that buyers avoid closing any sooner than 25 days from the start of a contract. 

Why shouldn’t a buyer try to close fast? What can go wrong?

·      Buyer stress is typically higher with short closings…everything is a RUSH.

·      Due Diligence on the house is rushed and often important issues are overlooked

·      Paperwork is RUSHED. As a result human error on paperwork is more likely to be an issue with RUSHED closings. Buyers will have to be very flexible with the process and since they will have little time to review paperwork and review what they are signing. Extremely detailed and Picky borrowers  will not be a good candidate for Fast closings.

·      Appraisal order is RUSHED, E-signings is RUSHED

·      The entire purchase transaction can leave the buyer with a bad taste in their mouth about their purchase which can lead to buyer remorse. 

Exceptions: Cash buyers and Investors can close as fast as they want, we still recommend buyers be cautious and do their due diligence. 

 

Where does the pressure to close early come from? Answer is: primarily from real estate agents. Why is that? They typically are motivated to differentiate their buyer’s offer from other offers, they are trying to make their buyer’s offers more attractive. 

What if a buyer NEEDS to close early, Can we do it? Answer is: Yes, but we want to make sure we set realistic expectations from the very beginning. Buyers need to be uncomplicated (cannot have layers and layers of income, assets, moving funds to here and there, etc.) and buyers need to be a bit tech savvy…we don’t want buyers sending us documentation through their phone camera images, low resolution docs…etc. Buyers need to know how to access their documents as .pdf files for example. Buyers will have to be very flexible with the process and since they will have little time to review paperwork and review what they are signing. Extremely detailed and Picky borrowers  will not be a good candidate for Fast closings. 
 

What is the recommended time needed to close a home purchase loan? 

Answer: 30 days