Seven last-minute obstacles to closing escrow on time
By Jeff Lazerson
Rate news summary
From Freddie Mac’s weekly survey: The 30-year fixed rate averaged 3.95 percent, 4 basis points better than last week’s 3.99 percent. The 15-year fixed averaged 3.38 percent, 6 basis points better than last week’s 3.44 percent.
The Mortgage Bankers Association reports a 2.8 percent decrease in loan application volume from two weeks earlier.
Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $453,100 loan, last year’s rate of 4.20 percent and payment of $2,229 was $79 more than this week’s payment of $2,150.
What I see: Locally, well-qualified borrowers can get the following fixed-rate mortgages at zero cost: A 15-year at 3.50 percent, a 30-year at 4.0 percent, a 15-year agency high-balance ($453,101 to $679,650) at 3.875 percent, a 30-year agency high-balance at 4.25 percent and a 30-year jumbo (over $679,650) at 4.50 percent. A 15-year jumbo is not available.
What I think: Never assume your purchase is completed or your refinance is funded until you actually receive confirmation from your escrow officer that the loan recorded with the county recorder’s office.
Many a loan officer, escrow officer or Realtor can provide you with accounts of hair-raising stressors that have delayed or even derailed closings.
Here are seven of the most common closing delays:
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