why might a home loan closing be delayed?
by: lh lending
The closing disclosure, referred to as the CD, is the most crucial part in the mortgage lending process, but it is likely the part least known about by the borrower. That is because most of it happens behind the scenes.
You supply the necessary information and your lending agency prepares the documentation. By law, your mortgage lending agency cannot provide a copy of the CD to anyone but the borrower.
After the CD is prepared, there are some cases when a closing could be delayed. Previously mentioned, the borrower has to recognize receiving the CD from the lender. Sometimes, this is done in person and many times it is done VIA email. You do not have to provide an actual signature if the documents are emailed.
By opening the email, you acknowledge receipt. If you don’t open the document, that could cause a delay, so look at any emails that are sent to you from your lender. If the APR increases more than 1.25%, the loan may be delayed or if the loan program changes stay away from a conventional to an FHA loan, that may cause a delay if there is another 3 day waiting period. This has to happen before closing can occur.
The final CD is in fact prepared by your mortgage lending agency and is sent to the borrower’s title company of choice along with the closing documents. Then and only then, the final CD is signed by the borrower at closing.
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This post was written by master