How Holidays Affects The Mortgage Process And Can Delay Closings

This ARTICLE On How Holidays Affects The Mortgage Process And Can Delay Closings Was PUBLISHED On December 23rd, 2019

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 Affects The Mortgage Process And Can Delay Closings.

How Holidays Affects The Mortgage Process And Can Affect Closing

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 Requirements

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 the following;
  • 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,12/23/20198 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.

How Holidays Affects The Mortgage Process And The Importance Of Teamwork By The Mortgage Team

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, they 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.

Choosing A Lender With No Overlays That Is Available During Holidays

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 Mike Gracz on 630-659-7644 or send questions to mgracz@gustancho.com.  we hope you have a safe holiday season. Stay tuned to Gustancho.com for more information on guideline changes for 2020. 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.