Helpful Tips, Real Estate

Plan Ahead if You Want to Close On or Near Labor Day

August 12, 2009 by · Leave a Comment 

As the unofficial end of summer, Labor Day weekend is popular vacation time for American families. 

And this year, with home sales on the rise and mortgage rates relatively low, early-September figures to be a popular closing date, too.

These points may appear unrelated, but there is an important connection between them. 

Like workers in every other industry, employees of the mortgage, title, and real estate industries are just as likely to be taking time off on and around Labor Day.  

For buyers with pending contracts, therefore, the closer that early-September closing date gets, the fewer industry folks that will be working to help close on your new house.

The same goes for households in the middle of a refinance.

With less than 4 weeks until Labor Day, you can take steps today to prepare for other people’s time off.  Here’s a few of them:

  1. Notify your lender of any planned vacation time between now and your scheduled closing.
  2. Purchase a homeowners insurance policy and prepay the first year, effective your closing date. Send proof of payment to your lender.
  3. Have Power of Attorney forms lender-approved and signed by all parties, if applicable.
  4. Deposit gift monies and/or retirement fund withdrawals into an acceptable bank account, if applicable.
  5. Schedule your final walk-through far enough in advance to resolve any issues that may arise
  6. Have your funds ready for closing at least 1 day early.

And, perhaps most important, fulfill your mortgage lender’s requests for additional supporting documentation within 24 hours of notice.  This includes requests for updated paystubs, bank statements, and tax returns.

The best reason to handle these tasks in advance is that, by the time Labor Day is around the corner, basic mortgage approval tasks will already take longer to complete — from clearing conditions to sending a wire.  Reduced staff means slower response times. 

Stay ahead of the curve and help save yourself from potential headaches down the road.  And, if possible, avoid closing on the Friday before Labor Day and the Tuesday after. 

On these days, staffs are the most lean of all.

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James K Barath, CMPS®

James K Barath is a Certified Mortgage Planning Specialist®, Certified FICO® Professional, Certified Military Housing Specialist® and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James for your FREE Home Loan Approval !  His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy!

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