How likely is the loan cannot close by the closing date?

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newbbie

New member
Can someone tell me what are the common reasons for a loan not be able to close on the closing date? If we buy from IPC, there will be buyer, lender and the builder three parties as the factor, right? Does anyone have experience of IPC's delay in handing over the house? In that case, they should be responsible for the penalty cost, right? What about if the lender cannot get the fund in place in time? Lender should pay for the penalty, is that right? Any chance it'd be the buyer's fault? Thanks in advance!
 
Buyer is responsible penalties for delays in closing escrow if he so chooses to go with his own lender and not the builder's preferred lender.

If you go with the preferred lender, then the builder will cover any costs in delays.  They'll outline most of this stuff in your sales contract when you sign it. 



 
I was in a situation where I used an outside lender and due to various reasons (lender, IPC, and my own documentation issues), the loan closed about 2 weeks late.  IPC threatened to charge me the penalty many times, but I kept them updated on what was happening, and really let them know that the delay is in no way intentional.  IPC wasn't friendly through the process, but in the end, they did not charge me the penalty.  It added to a lot of stress though and it makes me never to want to buy a house from IPC again.
 
Just long story short, if you use 3rd party loaner, and assuming you are still qualified to satiafy loan conditions up to that moment, then you probably need to get on top of things for documents you need to submit, and you need to get prepared to receive/sign/scan/email back any document within like 10-15 mins timeframe for the last week before closing. They tend to ask you for documents that they miss on the last 1-2 days. Good luck!
 
borca said:
Just long story short, if you use 3rd party loaner, and assuming you are still qualified to satiafy loan conditions up to that moment, then you probably need to get on top of things for documents you need to submit, and you need to get prepared to receive/sign/scan/email back any document within like 10-15 mins timeframe for the last week before closing. They tend to ask you for documents that they miss on the last 1-2 days. Good luck!
Click to expand...

You get this with the preferred lender too...it's just that the potential penalty falls on them (which I actually doubt gets incurred).  With the 3rd party lender, you have keep bugging them...especially if it's a bank. 
 
To answer the question posed at the title subject: It depends on the lender you're working with. Many are good, many are bad, and a few are extraordinary. I've found that some/most of the best that I've worked with

Things you should require from your lender realtor any relationship:

1. Open Communication - whether that be by face-to-face, text, email, phone... both parties should be available (within reason) to get concerns addressed. It is still pretty tough to read people's minds, no matter how much experience you have.

2. Tell the truth - good, bad or ugly, ask and answer the hard questions. This goes hand in hand with #1, but is important in and of itself. Very often in trying to be "polite" important details are missed or glossed over.

3. Treat each other with respect - recognize that you're working together towards the same goal. If you're treating someone merely as a means to an end, you're selling yourself short and missing an opportunity to have someone go well-above what "the minimum" effort might be.

If you're not getting this type of service, you should call SGIP.  #shouldvegonewithjohn

-IrvineRealtor
 
IrvineRealtor said:
To answer the question posed at the title subject: It depends on the lender you're working with. Many are good, many are bad, and a few are extraordinary. I've found that some/most of the best that I've worked with

Things you should require from your lender realtor any relationship:

1. Open Communication - whether that be by face-to-face, text, email, phone... both parties should be available (within reason) to get concerns addressed. It is still pretty tough to read people's minds, no matter how much experience you have.

2. Tell the truth - good, bad or ugly, ask and answer the hard questions. This goes hand in hand with #1, but is important in and of itself. Very often in trying to be "polite" important details are missed or glossed over.

3. Treat each other with respect - recognize that you're working together towards the same goal. If you're treating someone merely as a means to an end, you're selling yourself short and missing an opportunity to have someone go well-above what "the minimum" effort might be.

If you're not getting this type of service, you should call SGIP.  #shouldvegonewithjohn

-IrvineRealtor
Click to expand...

I'll add a couple more thing which I am dealing with.

1)  Responsiveness:  A broker who get back to you quickly on questions and updates.  Some brokers just see the commission check and not the people who are trying make the biggest investment of their lives. 

2)  Proactiveness:  My current broker is reactive...they sit on their hands until something happens and expects me to take care of it.  A lender/broker (IMO) should act like an adviser and help you along the process.  They should note things that may be problematic and provide you with solutions.  They should not wait for things to happen and then expect you to fix the issue. 

3)  "Fight for you" ness:  A broker is your agent.  They should fight for you against the underwriter to get you your loan.  They should not act as pass-throughs. 
 
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