This guide covers how holidays affect the mortgage process and can delay home closings. As the holidays come around our lives get very hectic. If you are in the process of obtaining a mortgage loan, you may have realized the process does slow down around the holidays. The support staff at mortgage companies are human beings as well. They like to spend time with their family and travel for the holidays just like everybody else. This can cause a slight slowdown in your mortgage loan process. In this blog, we will detail how the holidays can affect your mortgage process. In this article, we will cover and discuss how holidays affect the mortgage process can delay home closings.

How Holidays Affect The Mortgage Process With Delays in Processing

Holidays can have a significant impact on the mortgage process and closings due to the disruption they may cause to regular business operations. John Strange of Gustan Cho Associates says the following on his thoughts how holidays affect the mortgage process with delays in home closings:

Holidays often mean that banks, lenders, and government offices are closed. This can lead to delays in processing mortgage applications, obtaining necessary documents, and completing required inspections or appraisals.

With closures of essential offices, the overall timeline for closing a mortgage may be extended. For example, if a holiday falls on a Monday, it could delay the processing of paperwork until the following business day, potentially pushing back the closing date. During holiday periods, key personnel involved in the mortgage process, such as loan officers, underwriters, and real estate agents, may be on vacation or have limited availability. This can slow down communication and decision-making processes.

How Holidays Affect The Mortgage Process With Escrow and Title Company Operations

Escrow and title companies play crucial roles in the closing process. Holidays may impact their ability to perform tasks such as title searches, preparing closing documents, and facilitating the transfer of funds. Banks and financial institutions involved in mortgage funding may have altered operating hours or processing schedules during holidays. This can affect the timing of fund disbursement and the availability of funds for closing. Coordinating the schedules of various parties involved in the closing process, such as buyers, sellers, real estate agents, and attorneys, can become more challenging during holiday periods due to conflicting commitments and reduced business hours. Click here to get more about mortgage process during holidays

How Holidays Affect The Mortgage Process on Rate Lock Expiration

If you have locked in an interest rate for your mortgage, holidays may impact the expiration date of the rate lock. It’s essential to understand how holidays affect the mortgage process with the validity of your rate lock agreement. Borrowers need to communicate with their lender accordingly. To mitigate the potential impact of how holidays affect the mortgage process and closings, it’s crucial to plan ahead and communicate effectively with all parties involved. This may involve scheduling appointments and document submissions well in advance of holiday periods and maintaining open lines of communication with your lender and real estate professionals throughout the process.

How Holidays Affect The Mortgage Process and Closings

There are a few reasons why your mortgage loan process slows down around the holidays. Above and beyond mortgage employees taking vacation time, there are federal restrictions for waiting periods and rescission dates. An amendment to the Dodd-Frank Act integrated the TRID RULE for mortgage lending.

This amendment integrated the Truth in Lending Act and the Real Estate Settlement Procedures Act into a new disclosure process for mortgage lending

This change was put in place to make sure Americans completely understand the terms of their mortgage loan before entering the mortgage. It is important they understand each and every item up their mortgage loan. A new set of disclosure such as a loan estimate and closing disclosure now must be acknowledged and signed by the borrower at least THREE days prior to closing on their mortgage.

TRID Waiting Period Mortgage Guidelines

THREE DAYS can mean different things depending on who you ask. Does this mean three calendar days? Or three business days? Let’s clear this up. A business day in the mortgage industry is defined as all days besides Sundays and federal holidays. Federal holidays include New Year’s Day, Martin Luther King Junior Day, Washington’s birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day. If you are signing a closing disclosure around the holidays, it is important to understand that Christmas day will not count as one of the three waiting days. This may delay the closing of your mortgage.

Ways of Meeting Home Closing Date During The Holiday Season

If you close on a primary home refinance today,12/23/2018 for example, your loan will technically fund Saturday 28th of December. There is a three-day right to rescission, ending midnight Friday 12/27/2019. Above and beyond this timeframe requirement, your funds will not be dispersed until 12/30 since banks (the federal reserve) are closed on weekends. It is important to have your mortgage payoff valid through the funding date. This is something your mortgage company will double-check. If you are paying off other consumer debts with this refinance transaction, it is important that you do not miss any payments to those accounts. Please pay special attention to the funding date so you do not damage your credit profile.

The Importance of Being Aware How Holidays Affect The Mortgage Process 

Small items such as holiday and precision funding dates are important in the mortgage industry. This is why it is important to use a mortgage team who is up to date on their mortgage guidelines. This can be the difference between asking for an extension and possibly losing the contract to your home. Gustan Cho Associates pride ourselves on being up to date with all mortgage guidelines and offer top-notch customer service.

Please check out our reviews at Gustan Cho Associates. The reviewss and testimonial of our borrowers speak for themselves. Our team is here to help you and your family obtain the home of your dreams

We specialize in mortgage loans without LENDER OVERLAYS and many of our clients have been turned down by other lenders!  There is a lot of bad news associated with the mortgage process, if you have been turned down by your current lender, please give us a call. If for any reason you do not qualify today, we will come up with a customized financial plan to have you qualify as soon as possible.  Click here to get more about mortgage process during holidays

Choosing a Lender With No Overlays Available Late Evenings, Evenings, Weekends

As stated above, employees at mortgage lenders are traveling for the holidays just like everybody else. We are available 7 days a week including holidays. If you have any more words related questions, please direct them to Alex Carlucc at (800) 900-8569 or send questions to gcho@gustancho.com.  we hope you have a safe holiday season. Stay tuned to Gustancho.com for more information on guideline changes for 2024. As we approach the tax refund season, many borrowers are gearing up to buy a home. We look forward to hearing from you even on holidays. Enjoy time with your family and remember the important things in life.