How Holidays Affect The Mortgage Process and Closings

How Holidays Affect the Mortgage Process: What Every Homebuyer Should Know

Buying a home is one of the most significant moments in your life. But if you plan to close during a holiday season, you may run into delays you weren’t expecting. In this guide, we’ll explain how holidays affect the mortgage process, what causes the delays, and how to avoid them so you can still close on time.

At Gustan Cho Associates, we help homebuyers navigate tricky timelines around major holidays. Here’s what you need to know to stay ahead.

Why the Mortgage Process Slows Down During Holidays

No matter how ready you are to close, the holiday season can bring delays. Here’s why holidays affect the mortgage process:

• Banks and lenders are closed: Most mortgage lenders, title companies, and banks observe federal holidays. When they’re closed, nothing moves forward.
• Staff takes time off: Loan officers, underwriters, appraisers, and title agents may be on vacation. That means slower communication and fewer approvals being issued.
• Appraisals and inspections are delayed: With fewer workers available, scheduling inspections or appraisals can be pushed out by days or weeks.
• Escrow and title timelines shift: Title searches and closing documents can’t be completed or recorded if county offices are closed.

All these things mean your mortgage process could slow down around holidays unless you plan ahead.

Federal Holidays That Impact Mortgage Timelines

The mortgage industry follows the federal holiday calendar. If your loan is at a critical point during these days, expect a delay:

• New Year’s Day
• Martin Luther King Jr. Day
• Presidents Day
• Memorial Day
• Independence Day (July 4th)
• Labor Day
• Columbus Day
• Veterans Day
• Thanksgiving Day
• Christmas Day

Remember, if a holiday falls on a Friday or Monday, it can become a long weekend that halts progress for several days.

How Holidays Affect the Mortgage Process With Rate Lock Expiration

One overlooked area where holidays affect the mortgage process is your rate lock.

When you lock in a mortgage interest rate, it’s important to remember that this lock is only valid for a specified number of days. If delays occur due to a holiday and your loan does not close in time, there could be consequences for your locked rate.

Specifically, you may need to pay additional fees to extend the rate lock, or you could lose the benefit of your locked rate altogether and be forced to accept a higher interest rate.

Pro tip: Ask your lender for a rate lock that allows enough cushion around the holiday season, especially in November and December.

TRID Waiting Periods and Holiday Closings

TRID is the rule that requires lenders to give borrowers their Closing Disclosure (CD) at least 3 business days before closing.

But here’s where it gets tricky: TRID defines a “business day” as any day the lender is open for business, excluding Sundays and federal holidays.

If you plan to close on the Friday after Thanksgiving and receive your Closing Disclosure (CD) on Tuesday, Wednesday will start your three-day waiting period. However, Thursday is a federal holiday, so it doesn’t count as one of those days. This means you will need to move your closing to the following week.

Example:

The CD was released on Tuesday, November 21, kicking off a new financial adventure. We start counting with Day 1 on Wednesday, November 22, but then Thanksgiving hits Thursday, so we take a break. Day 2 ends up being Friday, November 24. We pick up the counting again on Day 3, which lands on Monday, November 27. After all these pauses, the earliest we can close is Tuesday, November 28. This timeline shows how one holiday can throw a wrench in things, making everything take a week longer.

How Holidays Affect Refinances: Right of Rescission Delays

When you refinance your primary residence, you have a three-day right of rescission after signing closing docs. This means your loan isn’t funded until three business days pass.

Again, holidays and Sundays do not count.

If you close on a refinance on Friday before a Monday holiday, your rescission doesn’t end until Wednesday or later, and funding might not happen until Thursday or Friday.

This delay can be a problem if:

• Your old loan payoff expires before the funding
• You’re using cash-out funds to pay off urgent debts
• You’re on a tight deadline with bills

Knowing how holidays affect the mortgage process can help protect your credit and finances.

Escrow and Title Company Delays During the Holidays

During the holiday season, things can take longer when buying a home. If the county office is closed, checking the title might take longer. This can change when you can buy the home. If the papers aren’t ready on time, that can cause more waits. If the banks are closed, you might not be able to get your money when you need it, which can make the process harder.

When you buy a home, recording the deed at the county office might be pushed to the next business day. This can delay your ability to get the keys.

Tips to Avoid Holiday Delays in the Mortgage Process

Don’t let the holidays derail your home purchase or refinance. Here are smart ways to stay ahead:

1. Close early: Schedule your closing at least one week before any major holiday.
2. Communicate often: Stay in touch with your loan officer, title company, and real estate agent.
3. Watch your rate lock: Make sure your lock covers any potential delays.
4. Don’t wait on documents: Submit requested paperwork immediately to avoid bottlenecks.
5. Plan payoff dates: If refinancing, make sure your current loan payoff stays valid through the extended timeline.

Choose a Lender That Works When Others Don’t

At Gustan Cho Associates, we understand how holidays affect the mortgage process, and we’re built to handle it.

• We work evenings, weekends, and holidays
• We process loans with no lender overlays
• We specialize in borrowers turned down elsewhere

If your loan is stuck because another lender is closed or slow during the holidays, contact us. Our team is standing by—even during the holiday season—to ensure your deal doesn’t fall apart.

Final Thoughts: Plan Ahead for Holiday Home Closings

The holiday season is meant to be joyful—not stressful. But the timing can add pressure if you’re in the middle of a mortgage process. Understanding how holidays affect the mortgage process gives you the power to plan better and avoid last-minute surprises.

Whether you’re buying your dream home or refinancing for a better rate, we’re here to help—rain, shine, or snowstorm.

Ready to Close Without Holiday Delays?

Connect with our mortgage experts today. We’re available 7 days a week to help you:

• Lock in your rate
• Understand your timeline
• Prepare for a smooth closing—even during the holidays

Call us at 800-900-8569 or email gcho@gustancho.com. Apply online now and start with a team that works when others take time off.

Frequently Asked Questions About How Holidays Affect the Mortgage Process:

Q: Do Holidays Slow Down the Mortgage Process?

A: Yes, holidays often delay the mortgage process. Lenders, title companies, and banks may be closed, which can delay necessary steps like underwriting, appraisals, or closing. That’s one key way holidays affect the mortgage process.

Q: What Holidays Can Delay My Home Loan Closing?

A: Federal holidays like Christmas, Thanksgiving, Memorial Day, and July 4th can delay your mortgage. If these holidays fall near your closing date, it’s important to plan ahead. This is another example of how holidays affect the mortgage process.

Q: How do Holidays Affect My Interest Rate Lock?

A: Your rate lock could expire if your loan doesn’t close on time because of a holiday. That might mean paying extra to extend it or losing the lower rate you locked. This shows how holidays affect the mortgage process and your budget.

Q: Will My Refinance be Delayed During a Holiday?

A: Yes. When refinancing your home, there’s a required 3-day waiting period called the “right of rescission.” Holidays don’t count in those 3 days, so your loan funding could be pushed back. That’s how holidays affect the mortgage process on refinances.

Q: Do Title Companies and Escrow Close on Holidays, Too?

A: Yes, most title and escrow companies follow the same holiday schedule as banks. That can delay paperwork, recording the deed, and getting your keys. It’s a big reason how holidays affect the mortgage process.

Q: Can I Still Close on a Home During a Holiday Week?

A: Yes, but you need to plan ahead. Try to close early in the week, keep communication open, and work with a lender like Gustan Cho Associates, who works evenings and weekends. These steps help avoid problems caused by how holidays affect the mortgage process.

Q: What is the TRID Rule, and Why Does it Matter During Holidays?

A: TRID requires you to get your Closing Disclosure 3 business days before closing. Holidays don’t count toward those 3 days, so your closing may be delayed if you get your paperwork near a holiday. That’s one way holidays affect the mortgage process with legal timing rules.

Q: What Should I do to Avoid Holiday Mortgage Delays?

A: Submit all paperwork early, ask for a longer rate lock, and stay in contact with your lender. Early planning can avoid most delays caused by holidays affecting the mortgage process.

Q: Can I Get Help with My Mortgage During a Holiday?

A: Most lenders are closed, but not Gustan Cho Associates. Our team works seven days a week, including holidays. That’s how we help borrowers who get stuck because holidays affect the mortgage process.

Q: Why is it Smart to Close Before a Holiday?

A: Closing early helps avoid delays with funding, paperwork, or title transfers. You’ll have a better chance of moving in on time and locking in your interest rate. Knowing how holidays affect the mortgage process can save you stress and money.

This blog about “How Holidays Affect The Mortgage Process and Closings” was updated on June 30th, 2025.