Two Common Loan Financing Delays
DAILY REAL ESTATE NEWS | THURSDAY, AUGUST 20, 2015
A last-minute problem with financing can quickly delay a closing on a home sale. Here are two of the most common financing problems that can surface:
In some metro markets, a delay to securing financing could mean missing out on a home. For example, in hot markets like California's Silicon Valley, sellers may even balk at deals that are contingent on a mortgage approval, says Mia Simon, a real estate professional with Redfin’s Silicon Valley office. Nearly every home is getting multiple offers there so buyers must go beyond pre-approval and receive a loan commitment before they submit an offer, she says. The loan commitment indicates that the borrower's paperwork has passed underwriting and the only thing necessary for final approval is the appraisal and verifying the borrower's employment.
Source: "How Mortgage Problems Unravel Home Deals," The New York Times (Aug. 14, 2015)