As a former mortgage processor and current mortgage originator, the most common reason that I’ve see closing delayed is due to a lack of cash to close which resulted from the home owner’s insurance policy coming back higher than expected. When you buy a new home, and set up escrows, your first FULL YEAR of premium for homeowner’s insurance is due up front at closing IN ADDITION to two months of cushion to start padding your escrow fund. That means that if your premium comes in at $1200 a year instead of $800 a year, you will be bringing an additional $433.33 to the closing table. It doesn’t seem like a lot compared to the purchase of a home, but when you combine that with your down payment, many homebuyer’s can easily find themselves short on verifiable liquid assets which causes everyone to scramble last minute to come up with additional funds (and provide all the documentation that goes with it)! That’s why getting an accurate quote from a reputable agent early in the loan process is so important to get an accurate loan estimate and BE PREPARED. I recommend Mark Flockhart at Compass Insurance Agency for a reliable quote comparing multiple carriers.
Cash To Close – You Live And Die By Your HOI
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