A Storm, Hurricane, Tornado, Flood, or Other Natural Disaster Could Delay Your Home Loan Closing

house after storm (2)Winter storms have swept across the Plains and Central Texas. This morning, alerts went out to all loan officers doing mortgage loans in those areas. Has a storm hit your area? Are you in the process of buying or refinancing a home? If so, this is information you need.

After a storm that could potentially damage the subject property, an inspector (usually the appraiser) will be required to visit the property to assess any damage.

If no damage was done, your loan will progress as normal. However, there could be a delay of several days while underwriting waits to receive the inspector’s report.

If the storm damaged the property, then repairs will need to be completed, and the inspector will revisit the property and take photos for underwriting verification. Only then can your loan progress to final approval.


If you are required to pay an additional inspection fee that will be included in your closing costs, then the new TRID law (as of 10/3/2015) requires the lender to complete a Change of Circumstances form and send you a new Loan Estimate (LE) with the additional fee. Then you have to wait 3 days so that you have ample time to review the new LE. Yes, the Feds have decided you need three days to look at the inspection fee before your lender can proceed with your closing documents. If this causes a delay in your closing, you need to do two things:

  1. Check the date of your interest rate lock expiration. Your loan officer can help you with this. You might need to buy an extension for your rate lock.
  2. Check to see if you need the seller to sign a closing extension. Check with your real estate agent.

If this delay is a concern, speak with your loan officer about the possibility of paying for the re-inspection fee outside of the loan closing costs so that a new LE with the required 3-day wait period is not required.

I hope everyone stays safe. My heart and thoughts go out to those who were hit by the storms.

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Available at most fine booksellers.
Available at most fine booksellers.