Mortgage Monday

Getting a mortgage these days is super tough and can be a long and frustrating experience. Even though rates are low and do not seem to be showing signs of rising, the lenders have truly not eased up on lending or the torture. In fact, it could be a little bit harder these days than it was last year.

Part of the craziness is the waiting game. Some lenders are faster than others but the truth is no matter how perfect a borrower you may be, your loan still goes in the queue. I remember so many of my clients shouting, “Don’t they know who I am?” The fact is Britney, they really don’t care.

Some lenders might be faster with mortgage applications for purchases, but most of them take weeks to review a refinance. Yes, there are exceptions, so don’t send a trail of comments. The reason for this short dissertation is to make sure the customers ask how long the process will take for THEIR loan at THEIR lender, so they can plan for things such as locking in, closing, moving and buying new houses.

Ask the mortgage loan officer how long the turn time is for the loan to go to underwriting (it can be weeks), then know that the lender will ask for more documents and there will be other hoops to jump through (tack on anther few weeks).  After the loan is “clear to close”, it will go into the closing department and legal takes over from there (another week). Right out of the gate, you are looking at six to eight weeks to even think about closing.

The big deal about timing with a purchase is the domino effect buying a house has on the seller as well as their seller and so on. Make sure your realtor and attorney do make promises that cannot be kept because you are not ready to close. Also know that you might miss cutoffs for school registrations or other things with the new town, so find out what you can line up in advance.  

With a refinance, it is all about more paperwork and more paperwork. Sometimes loans take so long to close, that the client has to update stale paystubs and bank statements. That is a real crowd pleaser! When refinancing, the key is to always keep your updated papers together in case the lender needs them at the last minute- again. Also be careful about locking in. Do not lock in too far in advance, even though the rate is good; you might be in jeopardy of losing it. The rates will have another good day to come.

Regardless, keep in good communication with the loan officer as well as any other professionals you have waiting in the wings. As long as you keep reporting in, they will feel your pain rather than blame you for any delays.  Please be careful with those early lock ins- those mistakes can be deadly!