Your loan is clear to close, you have 1 day until you will own your home. Your attorney has scheduled your close date and time - and you get a call from your loan officer. Your credit report was re run before the close day - and you have applied for a credit card with a local home improvement store or furniture company for the great 10% discount on your newly purchased furniture and paint- for your new home. Now your loan closing is possibly going to be delayed – or your loan type changed.
Why? If you open a new account after you have applied for a mortgage the bank must see a copy of your statement, your rate and terms of the new debt - and re qualify your loan based on the worst case scenario - you borrowing the full limit of the new line of credit (credit card) and the new monthly payments.
Best advice - DO not open a new account before you loan is closed.
Tuesday, May 24, 2011
Tuesday, May 10, 2011
Today's rates
For purchase - assume credit score of 740+ laon amount 417,00 or less,30 year fixed = 4.625% apr 4.7497, 15 year fixed, 3.875% apr 3.9986%, 5/1 ARM 3.875% apr 3.8986, Jumbo 30 year fixed, 5.375% apr 5.498, 5/1 ARM 3.750% apr 3.898% - Rates are always subject to change based on market conditions and your credit score.
Thursday, May 5, 2011
How to close your loan faster ...
The fact is that loans are more complex today than ever and they require more documentation. This is to limit the risk to the investor when they purchase the a loan, and the lenders need to sell their mortgage debt to be able to fund more loans.
The underwriting process can be frustrating and some of it seems ridiculous. There is a rhyme and reason behind this madness. Just remember loan officers don’t get paid until your loan closes, so we are not trying to make your loan or the paperwork impossible.
To close faster - get everything your loan officer asks for upfront, as soon as possible! Once the initial underwriting is finished (usually about 48 hours from receipt of you full loan package) get the loan officer EVERYTHING else they need to get your file “clear to close”. Don’t send them 3 out of 4 things they need … send them all!
If they ask for a 30 day bank statement don’t send them a statement with only 28 days. Get them what they need as fast as possible. This will ensure a timely closing and that your lock does not expire. If your lock needs to be extended, your loan officer can no longer cover that extension for you out of their compensation, new rules and laws prohibit this.
Fighting the extra stipulations or disputing the fact that you shouldn’t need to supply more income or asset documents - or saying I didn’t need this last time I did my loan will do nobody and good. It may be true BUT it is a waste of everyone’s time.
The underwriting process can be frustrating and some of it seems ridiculous. There is a rhyme and reason behind this madness. Just remember loan officers don’t get paid until your loan closes, so we are not trying to make your loan or the paperwork impossible.
To close faster - get everything your loan officer asks for upfront, as soon as possible! Once the initial underwriting is finished (usually about 48 hours from receipt of you full loan package) get the loan officer EVERYTHING else they need to get your file “clear to close”. Don’t send them 3 out of 4 things they need … send them all!
If they ask for a 30 day bank statement don’t send them a statement with only 28 days. Get them what they need as fast as possible. This will ensure a timely closing and that your lock does not expire. If your lock needs to be extended, your loan officer can no longer cover that extension for you out of their compensation, new rules and laws prohibit this.
Fighting the extra stipulations or disputing the fact that you shouldn’t need to supply more income or asset documents - or saying I didn’t need this last time I did my loan will do nobody and good. It may be true BUT it is a waste of everyone’s time.
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