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Final Conditions In? Still Need Sign Off & Docs Drawn – 4 to 8 Days

We had a purchase of a condo conversion recently where all conditions were signed off with the exception of the final condo documents. When the final documents showed up, the buyers and realtors (all great clients, by the way) expected to sign loan documents and close the next day.

In the above case, we still needed an updated prelim; we needed the underwriter to sign off on the final documents; and we needed the formal loan documents drawn. And then after getting loan documents, the borrower needs to sign everything, the lender needs to review the funding package, the lender needs to actually fund the loan, and escrow needs to record everything.

When lenders are as busy and as backed up as they are now, each of the above steps can take several days. Getting the “final condition” in rarely means we close the next day.

The only exception to all of this is when the “final condition” is a relatively minor “funding condition”. This is when lenders allow final conditions to be obtained AFTER loan documents are drawn, but before a loan funds. The scenario above involved more significant “prior to documents” conditions.

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646