I got an e mail from my loan officer (LO for short) today, he said my loan *should* close 'on time'. This means that my Credit and Capacity have been been fully analyzed and found to be satisfactory. The only thing that remains is to order the appraisal and have the Collateral reviewed. The LO stated that barring anything unforeseen we should be able to close on time (like, ah, the first week of June, which means could be any day between June 1 and 5, not that it matters or anything). The inability of some one in escrow to give me a hard date to close is frustrating, but like many things in this experience, to be expected. It's not unusual to not have a closing escrow date until a you're a couple days away from it.
The only hiccup I could occur is that the appraisal comes back stating that the neighborhood is a 'Soft Market', which means that there are too many distressed properties (distressed as being in foreclosure, or bank owned) in the neighborhood. Current GSE guidelines require an additional 5% down if this is the case, which means I would have to throw down an additional $9,700, something that wouldn't cripple me, but it would be something I would like to avoid.
If that happens; I don't think it will because the unit (from my meandering experience) is priced exactly right for the market, then I could break escrow and cancel the transaction. The possibility exists for people to back out of real estate transactions if the terms of financing change. I don't expect this to happen.
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