Along with the new GFE and HUD-1 sweeping changes is a provision which allows for the lender to issue a new GFE due to “changed circumstance”. Should a “changed circumstance” occur at the last minute, the closing could be delayed for three business days to issue a new GFE. Although it is not clear what exactly is a “changed circumstance”, an out of the area lender may forget or underestimate a local closing cost.
All of our local lenders understand the customary closing costs and procedures, and would not use these to create a “changed circumstance”. It’s not the same for an out-of-the area or internet lender, who is more likely to underestimate closing costs (especially in the “10% or unlimited tolerance” buckets), and then later create a closing delay or ask the borrower to pay additional closing costs due to a changed circumstance.
Accordingly, to avoid any delays with the closing, insist that the Purchaser use our excellent local lenders.
Please contact me if you have any questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.