Congratulations, you found the home of your dreams or the perfect buyer for your home for sale in San Jose. If you are the home seller or the home buyer you have probably called your agent more than once and asked “What is taking so long to close escrow?”
Your question has likely stemmed from the period of time you have had to wait to be notified that the appraisal has been ordered, or worse, if the loan has been approved.
Feeling like your entire life is on hold, based on a home loan approval, is frustrating and likely due to the new GFE (good faith estimate rules) requirement implemented in January of this year. Without a GFE an appraisal can’t be ordered.
The previous one page good faith estimate (GFE) disclosure is now a 3 page document. The purpose of the document is to disclose to you, the home buyer, what the interest rate, taxes and insurance costs are. It also defines what percentage it can vary from section to section. Makes sense except not every bank and borrower get it. Like any “change” it will take a bit more time for lenders to smooth the process.
What’s seems to take the most time is the new HUD1 revision. The HUD1 is the Housing and Urban Development cost worksheet. The changes in this new form are so complicated that bank’s short sale departments can’t figure it out. Making it necessary to send along a worksheet with the HUD1, I guess.
Is there a way to overcome these new difficulties? Hiring trusted advisers is the best advice I can give you. Buying or selling a home will always deliver an element of anxiety no matter what.
The level of experience your Realtor and Lender hold will always affect the outcome of your home buying or home selling experience.
Q: Can you think of any other factor that is more important? A: The experience of the opposing side!
The Fourniers-