Consolidated answer to the mortgage posts the past few days

[Chris Mason]

Screenshot is worth a thousand words. This is what we are seeing on private LO-only facebook groups, places where you gotta show your license to join the group.... discussion after discussion just like this. Direct lenders, bankers, brokers, brick-and-mortar, call center, internet lender, whatever, no difference right now, anyone can catch the 'rona (and/or it's impact on a particular loan file in progress). The below, over and over and over again. 

Keep in mind these guys and gals are funding 10 or 15 loans for every one that something like the below pops up on. So far (knock on wood) I've personally been spared. 

(The thread CONTINUES for another 2 hours, bringing us to present moment...)

Some ways to manage this systemic risk:

a) In some states (California being one), contingencies are not released unless you proactively do so. Don't be in a rush to be proactive. 

b) Tack a week onto whatever you are told for how many days your LO needs to close. Hopefully you don't need it!

c) Stick to Realtor-LO teams. If you need a week, it's a GREAT tool for your Realtor to be able to tell the other Realtor "Oh, yeah, I've worked with so-and-so for dozens of transactions, if they say bla-bla-bla, then it's bla-bla-bla." 

d) The size of your earnest money deposit is not a pissing contest. 

e) Stick to the most vanilla loan options available to you, if you have several. That's conventional conforming Fannie Mae, not FHA, not anything else fancy.

f) Know that once you are in escrow (seller has actually signed on the line which is dotted), the balance of power shifts much more towards the buyer.