Think about it. Four weekends total to pack and arrange all that is required to make a move. It’s hard, taxing, stressful and painful. Unless there is a reason that one has to move in 30 days, most people would prefer to have more time for this massive undertaking.
It is hard for mortgage lenders to close loans in 30 days too, painful, stressful and full of anxiety… mostly because so much of the process is out of the control of the lender. Among the greatest stressors in the mortgage industry today is the appraisal process. Today, much of New England expects a three-week period, or more, from the time the appraisal is ordered until the lender receives it. Once received, the appraisal has to go through an approval process, either with an underwriter or the lender’s appraisal review department. It is almost guaranteed that the report will need some type of correction. Appraisers are moving fast and can be overworked. They’re only human, they can make mistakes. However, today’s exacting mortgage process requires that all documents be absolutely perfect, to market specifications, prior to closing.
Getting corrections on an appraisal report can take several days. Appraisers are on the road daily and often spend their evenings at the computer, completing reports, or revising and correcting old ones. It can take time to connect with them to discuss the necessary changes to the report and to get the corrected report back.
The appraisal industry seems to be in crisis. Today there are fewer and fewer appraisers in the industry to meet the demands of this aggressive market. In the State of North Dakota alone, there are only 17 licensed appraisers. Thus in many areas of our country, appraisers are demanding $1000 to $2000 for a report, not including rush fees.
Think about this: in MA it takes at least 21 days to obtain an appraisal report, 2-5 days for approval, or revisions and final approval, then the loan needs to be clear to close prior to the closing date to meet the requirements of TRID regulations.
This situation makes 30-day closings near impossible, unless the stars align for all parties. The process might be easier for everyone if contracts were written with an, “On-or-Before,” closing date of 40 days out. This way, when there is a one-to-two-day minor delay in a closing, the need for extensions and back-and-forth goes away. The buyer and seller remain protected by the mortgage contingency and deposit check.
The knowledge that all are prepared to extend the closing date by a few days, due to unforeseen minor delays from third parties, helps all of those affected by the home buying process to sleep a little easier.