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Re: Signing commitment to closing
I signed around June 16, got the commitment letter yesterday with a closing on/about Aug 1st
Message edited 7/3/2014 9:21:29 PM.
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Re: Signing commitment to closing
It really depends on what the commitment letter says. A mortgage commitment usually has some conditions on it that you, as a buyer, need to fulfill prior to closing. Usually, it's just a few housekeeping items (updated pay stubs, securing homeowner's insurance). But sometimes a commitment letter can be issues subject to an appraisal, and then there are more steps that have to happen for when you can close.
It also depends on whether there are any C/O or title issues that are outstanding (do you have to wait for the seller to get a C/O for something? Is there something on the title report --like an old, unsatisfied mortgage (or satisfied mortgage that wasn't recorded properly -- that needs to be corrected?) Sometimes a buyer's attorney will wait until the last minute to run a title report or order a new survey (if needed), so you should speak to your attorney to find out where all of those things stand.
Also, some banks are faster than others at clearing a loan once you have a commitment and the conditions are met. Some banks will give the "clear to close" within a matter of days, and others take weeks. I've also had certain closings where the lender was a credit union and requires advance notice of the closing. I had one recently on a listing where the buyer was an MTA employee and using the Municipal Credit Union. The lender needed 7 business days notice prior to closing.
And finally, of course, it depends on the unique situation of what you and the seller agreed to. If the seller negotiated an on or about date of September 1, because they can't move until September, then it obviously doesn't matter if the bank gives the clear to close next week.
Generally speaking, most of my transactions take about 60 days from contract to closing, and the commitment usually has to be obtained within 45 days of contract (but often is gotten sooner). So it usually takes 2-3 weeks post-commitment to get everything sorted out on all fronts and for the bank to give the final clearance.
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