Things are moving along at a nice pace and then BAM! out of no where come mortgage issues… how could this happen?! Believe it or not, there are a few very common things that frequently are the sources of those bumpy roads. Read on for some tips from Jason Banks, with Presidential Mortgage.
1) Internet banking – With the invent of internet banking, we find clients are very active with money transfer. Each transfer has to be paper trailed and followed. We once had a client with 23 different accounts that they would push money to every month.
2) One day sale! – I get called a few times a month by the client that is at LOWES, HOME DEPOT, SEARS, etc. stating they have a fantastic sale on Washer Dryer. Keep in mind, the mortgage process is like a recipe…change one ingredient and you may not end up with a house.
3) Availability of Funds – any time a borrower is withdrawing funds from a 401k, IRA, TSP, or some other “non-cash” account, we recommend that the client withdraw the funds at least 2 weeks prior to settlement. We have had clients try to wait to the last minute only to find out it is a 10 day process…
4) Lack of Urgency – The mortgage process is many times a very tight time line. I find that for some clients, they are not aware that every day counts. I have sent loan papers out on a Monday to be told they can get them back to me within a week OR SO…. The quicker we get the loan package the quicker we can get everything ready to submit. On every file we hope to have the loan ready to submit the minute we get the appraisal in hand.
5) Appraisals – The timing of appraisals continues to be an issue. We are now requesting the reports be turned into us with 15 days. This is up from 10. So please write your contracts accordingly as we cannot push appraisers for expedited service based on HVCC guidelines.
Everyone wants a smooth deal… taking these observations to heart will be a huge help in keeping the mortgage process moving smoothly along.