Having a hurricane hit your area can be a stressful time, but if you’re going through the process of getting a mortgage loan it can be filled with even more uncertainty. Here are a few things you can expect if you are closing a loan and a hurricane affects your area.

Another Round Of Inspections To Close A Loan After A Hurricane

You should know that lenders will want an inspection before closing. The appraiser must do a final inspection to make sure the house is still in good condition and that any damage has been repaired properly. The inspector will ensure no new issues have arisen from the storm or its aftermath. This is where it gets tricky for some people because they think they just need to get their home appraised by an outside agent, but it’s not quite as simple as that.

The appraiser needs to come out and inspect the property himself because he knows what he’s looking for when he makes his own assessment, which could include looking for mold, water damage, or electrical issues.

If you have a Non-QM home loan, you may be asked to do some off the work. We had one lender who asked us to take pictures inside and out, send them letters from the borrower and seller stating everything was okay, and show valid insurance.

Remember, the inspectors are not only working on your loan. They need to go to all the homes that are in closing after a storm a second time. This can create a backlog for the home appraisers.

Lending after a hurricane is not a standardized process. Be patient with your lenders. They want to protect you as a borrower and make sure the seller is disclosing everything after a hurricane.

Your Rate Lock On A Mortgage After A Hurricane

In most cases, your rate lock will be protected because these inspections are unexpected, but you always want to double-check with your mortgage broker before assuming anything. Know when your rate lock expires, and if you do need to take action. Ask your mortgage broker about what you can do.

More Documentation Requirements To Close A Loan After A Hurricane

You will need additional documentation about the inspection after a hurricane. Underwriting will need to review the documentation. Depending on your lender, there may be additional requirements on a case-by-case base.

Next Steps

If you are in the process of closing a loan, call us now (727) 784-5555. We will walk you through what to expect and answer all your questions, not just the traditional ones.

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