With Hurricane Irma on its way, we want to remind everyone of the potential impact that storms like this can have on the mortgage process. BankSouth Mortgage is doing everything we can to make sure our loans close on time, but we cannot predict factors that may extend the loan process due to the storm. If you or one of your clients have an upcoming closing, please read the following carefully, and contact your Mortgage Banker for more information.
FEMA declared disaster areas (and surrounding areas) require an additional appraisal inspection to check to see if the home and its value are still intact. This will add an additional fee of $125, paid by the borrower, and can delay the process further. In addition, if there is significant damage in the area, it may take more time for appraisers to access certain areas and their services may be in higher demand due to this additional requirement. Your loan officer will communicate if this requirement applies to you or your client.
With the threat of potential damage to homes, many insurance providers will cease providing insurance binders until after the storm. Loans cannot close without the insurance binder, so we are dependent on the insurance companies to remove the hold. If you or your customer has not finalized their insurance yet, but is still able to do so, we recommend they consider binding that policy if they believe it’s beneficial.
In addition to these two potential challenges, everyone must consider the logistics during and after the storm. Realistically, the parties will need to be able to get to the closing and the lender and closing attorney’s offices will need to be up and running. Once the storm passes and the extent of the damage is known, FEMA will issue further information that will help us determine the next steps. In the meantime, please focus on your safety and contact your Mortgage Banker if you have any further questions or concerns.