The time period from acceptance of an offer to actually taking possession of their new home is an emotionally exciting one, especially for first time home buyers.
Information is being collected and will be added to this post very shortly. Some of the material needed has yet to be obtained. In order to keep this article in close proximity to the next one that deals with the transaction process from the aspect of the title company, this post will be published and then amended soon.
Well... here it is May 14th, 2006, and I still have not been able to get an answer. I asked for the information from two local mortgage loan originators, and each seem too busy to pencil down a time frame for us. What I have found is this:
When an offer to purchase is made, the realtor working with the buyer usually puts down a date that stipulates something to the effect: ".... the transaction will close on or before ______ (date)". Realtors are urged to allow at least 30 days by some mortgage originators, as that will allow time for loan application, requested credit documents to be obtained and presented, title work to be completed, etc. If the loan involves Ameridream or VA lending programs, we are often advised to allow a little more time, and write in 45 days forward as a closing date.
What I have found, is that the "on or before" clause seems to be loosely interpreted as "on", and some parties work towards that specific date as the seemingly official target date.
In is important to note that often times mortgage loan originators can and do perform in a very short period of time, sometimes in as little as 14 days!
Though not advisable, the language "time is of the essence" can be inserted into the purchase offer, which stipulates that the transaction
must take place by a certain date. Though this clause is a sometimes very necessary clause for commercial real estate transactions, it is best left out of residential purchase offers.
A comfortable rule of thumb seems to be 30 days for conventional loan processes, and about 45 days for Ameridream and some FHA and VA.
Thanks,
Best regards,
Jim Dvorovy
