Even with low, low interest rates and new government recovery programs, it can be a tough road to walk to get to the closing table on refinancing your home loan. At InSight Mortgage Group, we work to smooth out the few bumps you may encounter along the way – it’s our specialty.
Strangely, the tough part isn’t the “approval” process for borrowers, it’s keeping the approval!
I’ve recently blogged about the mortgage industry in general, starting in 2005, being understaffed. With these wonderful low rates, lenders are getting slammed with requests and are having a difficult time handling the volume. An underwriting logjam has been created.
These days taking a mortgage application from start to finish with some lenders can be as long as 2 months! That’s double the time it took about 6 months ago, when the average was 20 days to closing.
You know, a lot can happen in 60 days. More so than in 20 days. And while there are things outside your control which may affect the loan process, there are a number of things you can control.
Mortgage approvals are delicate things and nothing’s complete until it’s complete! Please keep in mind the following “rules” for the period of time when your loan is in underwriting and before it closes.
A. DON’T buy a new car, trade up to a bigger lease, etc. (incur more debt)
B. DON’T start a new company or quit your job
C. DON’T move to a commissioned job from a salaried job
D. DON’T transfer large sums of money between bank accounts
E. DON’T be late on paying your bills
F. DON’T open any new credit accounts -- even if it’s 0% interest for the next year
G. DON’T take a cash gift unless you have all the proper “gift” paperwork filled out
H. DON”T make random, undocumented deposits into your bank account
The above are red flags to an underwriter and only one is enough to slow or even derail the process. Situations arise, and it doesn’t mean that you can’t get a cash gift or buy a new car, it means talk to your loan officer first. We’re here to guide you each step of the way, so call us at 913-642-3334 or email me at firstname.lastname@example.org to get started on your refinance.