Note: This is the second piece in a two-part blog. Click here to see part one, "What Really Happens When I Apply for a Mortgage"
Obviously circumstances arise which legitimately prolong the mortgage approval process. Not every loan will close in 2-3 weeks no matter how capable all of the parties involved are. However, you can reasonably determine what you can expect for performance and timeline of your lender from the initial step of applying for your mortgage by asking the following questions to the person taking your application:
1. How long does it take to close my type of loan (Fannie Mae, FHA, etc…)?
2. When do you lock my rate and how long is it locked for (15-30 days is traditional, anything longer means higher rates)?
3. Do YOU run my credit check and provide my quote or do you have to send it to another person or department to have that done?
4. Are YOU my point of contact to get real time answers for any and all concerns I have throughout the process or do you have to pass my question on to another person?
5. Do you process and underwrite your loans in house or do you have to ship my file to another location or another company for this?
Asking all of these questions will help you decipher how efficient the company you consider applying with is and should be a major determining factor in who you do business with. Nobody cares how long the process takes in the beginning but after 3-4 months of not closing, most borrowers would gladly pay an extra couple of dollars per month on their mortgage payment (which is generally the difference between one company and another) just to be able to talk with someone who has answers, let alone someone that could have gotten their loan closed in a quarter of the time.
I hope part one and part two of this blog post helps you out the next time you consider applying for a mortgage – nobody I know likes waiting for answers and service and hopefully after reading this, you won’t have to either.
Charles J. D'Arezzo, Lo
an Officer (NMLS# 29022)