Binders on Home Purchases

[kgarr]

I am curious at how others are handling new home purchases. In my agency a pain point that we have is that a new home purchase will have a mortgagee that is requiring a binder to proceed with closing on a home. However the closing dates always seem to be pushed back for one reason or another. When these dates are pushed back the banks are not notifying us of the change so we have to keep right on top of these to make sure the policy get bound on the correct date.

In situations like this are you sending out signed binders for the estimated closing date and checking back in on the closing date to make sure it closes? Are you sending just evidence? Are you even using binders? Just curious at how others are handling this?

 

[djs]

Re: Binders

If they don't tell me of the delay, it gets bound on the date of the binder. I got tired of chasing delays.

Most carriers will allow you to change the effective date, at least for a short bit.

Dan

 

[iiinycboi]

Re: Binders

With my mga, they have binding authority and I submit all paperwork to make sure it wis bindable. Then I issue the binder for the estimate closing. I tell them to call me if they finalize it or it needs to be moved. Then one the same day of actual closing I tell mga to bind effective that day.

My new closings have an average three reschedules.

 

[NCAgent]

Re: Binders

Working in a mortgage company I can honestly say that about 80% of the loans do not close on the anticipated closing date. They all get moved somehow, though sometimes AHEAD of schedule which can be tricky sometimes since companies might not like moving AHEAD in time instead of BACK.

It just happens. Follow up a week after the original closing date and ask what happened. No one keeps the agent in the loop since you gave the client the documentation needed. Even if you didn't change the date there is still 30 days for the closing check to come in before the client gets billed- I use this as the "you never told me like you said you would" scenario and then we're done with it.

Insurance companies know mortgage companies are never on schedule and things are always an emergency. Just have the insurance done and have it paid within 30 days and you should be fine.

 

[djs]

Insurance companies know mortgage companies are never on schedule and things are always an emergency. Just have the insurance done and have it paid within 30 days and you should be fine.

Well said! Wish I had a dollar for every changed closing date that I wasn't aware of!!!!

Dan


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[Soaringagent]

This does happen quite often.

 

[Jason Janus]

Dealing with this situation today! It was bond for the 14th but the closing got moved to tomorrow. It stays bound as the 14th!