NEW YORK (MainStreet) — Want to move into a new home by Labor Day? Sept 3, the deadline for many who want to be relocated by the start of school, seems like a long way off, but really isn’t given the glacial pace of mortgage approvals.
Many lenders are taking 90 days to approve loans. For the majority of applicants — people who are refinancing — that’s just an inconvenience and minor expense, adding a month or two of payments at the old loan’s higher rate. But for buyers with a deadline like the start of school or a new job, delay can be serious.
It’s a problem for sellers, too. Not only are lenders taking longer to grant loans, they are rejecting more because of today’s tight underwriting and appraisal standards. A seller can find a buyer — tough enough in today’s market — then wait three months only to find the buyer’s loan denied. The seller can continue showing the home during that period, but that’s a hassle and many buyers feel it’s a waste of time to look at a home under contract. …
See the rest here: Prepare Yourself for a Slow Mortgage Closing