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