What Will Delay a Closing After October 3rd?
The sky hasn’t fallen. The world still turns. Life has not come to a complete standstill since the October 3rd implementation of the Consumer Financial Protection Bureau’s new Closing Disclosure Forms.
So what will cause an official delay in closing? According to Consumer Financial Protection Bureau’s Fact Sheet:
- The APR (annual percentage rate) increases by more than 1/8 of a percent for fixed-rate loans or 1/4 of a percent for adjustable loans. A decrease in APR will not require a new 3-day review if it is based on changes to interest rate or other fees.
- A prepayment penalty is added, making it expensive to refinance or sell.
- The basic loan product changes, such as a switch from fixed rate to adjustable interest rate or to a loan with interest-only payments.
About anything else that could delay a closing, will delay a closing even before October 3rd’s implementation of the Consumer Financial Protection Bureau’s new Closing Disclosure Forms. Life happens. When there is a mortgage involved in the Real Estate transaction, we are reliant on the mortgage lenders and/or banks to keep the transaction on target. However, there can be hiccups down the road. It is a matter of Realtors managing expectations and the situation if/when a delay in a closing does happen.
Consumers more than ever need Realtors that are aware of the contract milestones and are sure that the whole team is meeting the deadlines as specified in the contract. It is no longer acceptable for the Realtor to be absent throughout the course of the contract. It is a new era where the value added is in the Realtor’s ability to handle the contract, to keep the transaction viable, and to work with all parties involved.