How the Closing Process Has Changed Due to COVID-19

How the Closing Process Has Changed Due to COVID-19

 

Whether you’re in the process of buying or selling a home or thinking over the possibility, you should know that the closing process has changed over the past few months. If you’re the buyer, your lender will still require all the same information and inspections, but these may be handled differently than before. As a seller, you should realize that it may take longer to sell your home or just to get to the closing date.

Expanded Timeline
Lenders are still allowing you to lock in your interest rate for the same time, 30 to 60 days, depending on the lender and type of loan. Unfortunately, however, banks may not be able to do all that’s necessary in the same timeframe as before. For example, if you need proof that your HELOC is paid in full, it may take the bank weeks to get the information to your county to file the release of lien. Depending on how well-staffed your county is, it could take them weeks to file the information so your new lender can see your true financial picture.Some companies that are part of the homebuying process can no longer get people on their schedule within the same timeline they could previously. With families juggling childcare and work, that often means limited staff availability so the closing date may need to be adjusted.

The Closing Process
The coronavirus hasn’t changed what happens at home closings, but it has changed some of the logistics. Here are a few adjustments that may occur.

  • The buyers and sellers don’t sit down to sign the paperwork together. Instead, either the seller and buyer are in separate rooms or the sellers sign everything first and then the buyers arrive to finish the process. We’ve even heard of closings happening in cars!
  • Your Realtor® will not be allowed in the room with you.
  • You may be asked that one member of your party sign a Power of Attorney so only one person actually attends the closing.
    Rather than signing on paper, you may be given the option to electronically sign all or some of the paperwork prior to coming into the actual closing.

In the end, everyone wants the process to go smoothly. Whether you’re a buyer, seller, Realtor or investor, having trusted partners you can turn to is imperative. These partners may include a good mortgage company, home inspection company, and appraiser.

As a leading area home inspection company, Pillar To Post has adapted our process to include recommended COVID-19 practices for home inspectors and more client-focused ways to help you feel included in the inspection. We still provide you with an extensive report from the inspection, but we’re also happy to provide you with either video of an area of concern or we can take part in a video call during part of the inspection itself. Let us know how we can help you with your home inspection for your new home. Call us today at (727) 934-8339 or fill out our contact form.