It is best to close on your home purchase in the afternoon. My clients were using Quicken Loans to get their mortgage. We closed on Thursday at 10 am. When we first got into the closing the title company closer told us the money had not arrived yet, but it should arrive soon. So the buyer and the seller completed all the paperwork.
But at the end of the paperwork the money still had not arrived in the title companies account. The title company called Quicken who said the money had been wired.
SO NOW WHAT HAPPENS YOU ASK?
Without the money the closing is not complete.
The buyer can't get the keys and can't take possession of the home.
The seller has to wait for the money and can't buy their next home.
EVERYBODY HAS TO WAIT AROUND UNTIL THE MONEY COMES IN. Usually what happens is everybody leaves. They go on with their day. Then the title company calls everybody when the money finally arrives. The buyer comes back in to get their keys and the seller comes back to get their money.
WHY DOES IT HAPPEN? Because the lender does not wire the money soon enough. They could wire it the day before but sometimes they don't. Some companies have certain times they wire the money. It may not coincide with the closing times. So the buyers and sellers have to wait.
HOW OFTEN DOES THIS HAPPEN? In 2009 and 2010 it seems to happen too often. So you have to be patient if it happens.
We finally got the call about 12:30 to come back to get the keys.
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My Month of December quote:
~ Mark Twain”
Russ Ravary
"helping make your move easier"
your local Metro Detroit Realtor helping clients like you sell and buy homes through out the entire Metro Detroit suburbs. I love showing and selling Oakland County and Livingston County Lake front homes too.
I think you had right to try to close in the morning - at least if it is extended you can get in the house in the afternoon....
Things work differently in other states. Here we sign one day, fund the next day, then record the following day. Recordations happen between 8:30 and 10:30 am.
It happened to my Buyers as well. We had "Dry Closing" on Monday and finished on Tuesday at 3:45PM. Both Buyers and Selllers were frustrated.
This is sneaky, but I have done this quite a bit. If I don't have the docs and figures at the title company 2 days prior to closing, I then call the other side of the deal and ask for an ammend extend just in case for the following day.
Lenders have had a lot of difficulty for closing on time (Why I do not know, but they have). I do what I can to set the expectations of my buyers that this may close on the following day, not because of anything we have done, just lending delays with underwriting departments have been so prevelent.
The other tactic I use now, is I let the lending partners know that closing late is never an option and three strikes and you are out.
I know it isn't perfect, but I have just learned that if the processor or the underwriting department is not keeping to the timelines in the contract that I co-established with the loan officer, the client should not have to be penalized.
Russ, I have heard they like to keep it in their accounts until the last minute.
There are some banks that wire it the day before, but they are few and far between.
It is frustratiing when the moving trucks are packed and they have to sit and wait.
Hey Russ - I just wanted to leave you a quick note to thank you and your clients for your patience with the closing. I assure you, we typically close loans in 1/2 the time of our competitors, but things do come up. If there is ever anything I can do for you, please let me know personally.
Thanks again for working with us and your patience. We appreciate it!
Kelly
Quicken Loans
Kelly@QuickenLoans.com