10-25-2011 07:00 PM - edited 10-26-2011 06:02 AM
Talked to a LO today (mine from years ago) and asked if she still did miracle mortgages. She said nope - times have changed. She said the minimum time required by law, from the time they have all of the docs and the appraisal is 10 business days. Is this accurate??
She also stated that (of course!) they give the appraiser the ratified contract cuz he needs it to get into the house! (Really? Does it come with keys too??) I told her that the realtor is there to let the appraiser into the house and that I was pretty confident that the ratified contract wouldn't do the trick. She shoots back with, well of course he NEEDS the ratified contract so he knows who to call to let him in the house. LOL. I pointed out that the LO can provide that information without handing over the contract.
Know what her response was? Oh no, she can't do that cuz she's NOT ALLOWED to have any contact with the appraiser! New law as of last year!! She's not even allowed to ask a question of the appraiser! All stuff must go through a third party. And they choose the appraiser through a lottery type random selection.
Shane, or anyone, is this for real???
1. Does the law say it must be a minimum of 10 business days from the date the appraisal and all docs are in the hands of the LO before a close can occur?
2. Is it true that the LO (and bank) can no longer have direct contact with an appraiser?
10-25-2011 07:30 PM
IOBA =- yep, it's true about the appraiser. I've read about that in a legal journal I am now getting in the mail weekly thanks to the previous owners of this house.
Regarding the 10 days - Never heard a thing about that in my life. Never read it mentioned. My LO never said anything like that and I know for sure she would have told me since I was biting down her neck to close this loan. I think from the day my appraisal came in it was 7 days later I had the keys. (I think...).
10-26-2011 05:56 AM
I don't know if the timeframe is true or accurate but I don't believe so. My loan is FHA so don't know if that's different than the type of loan you're getting. But anyway, my LO requested the appraisal be completed by 10/24 which is 7 days before we close. The appraiser actually completed it on the 19th. But as far as my LO talking directly with the appraisal company, she said they had to go through a third party (maybe the title company but I can't remember anymore) to schedule it.
10-26-2011 06:25 AM
I think I am glad that the LO can not speak directly to the appraiser anymore.
One of the contract (seller) requirements was a lender letter (from underwriting) that stated the loan was a done deal within 10 days. (see previous post) I think it would be great if a "closing" could happen within 2 weeks. It would be awesome!
Does anyone else know if the minimum 10 day rule after getting everything, including the appraisal, to close?
10-26-2011 08:03 AM
The timeline sounds correct. There are minimum wait times between a couple steps in the mortgage process that will usually require a minimum of two weeks to close. 10 days is REALLY quick. Is this a conventional loan I assume?
10-29-2011 03:43 AM
There are required disclosure waiting periods that have to elapse before your loan can close, it's about 10 business days before they all can elapse.
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