- Large depository banks and financial institutions-mortgage loan origination including both refinance and purchase activity is only a single division, these banks are also looking for other credit products such as wealth planning, bank account deposits, credit cards and the full banking product menu- in other words, loan origination is not their prime focus, but rather all the products collectively, expect turn times of 90 days at the minimum.
- Mortgage lenders and mortgage brokers– specializing mortgage loan origination only and can facilitate faster operational turn times, 45 days in most cases.
Homeowner refinancing tips to ensure your loan will close as expediently as possible
→Pick the right mortgage lender by getting a mortgage rate quote upfront and deciding if this person’s product and costs are reasonable enough for you to conduct business with them
→If your mortgage lender/servicier is soliciting you to refinance your loan, obtain in writing how long it’s going to take. Most of the time they’re in the same boat as large depository institutions and they will require all of your financial documentation, best to get a second opinion.
→Let the mortgage professional pull a copy of your credit report and review your financials to make sure you have the best possibility of qualifying for the home loan.
→Don’t take a 30 day mortgage rate lock, if your loan take 45 days to close escrow, the lender or you will have to pay the 15 day cost to extend the interest rate further into the future. Best to consider taking the 45 day rate lock for a slightly higher cost. In fact, most lenders to support the increased volume offer 45 day lock choices for 30 day pricing, another sign that you’re working with a makes sense mortgage company
→Longer lock periods such as 60 days, 90 days or even 180 day rate locks cost more, the longer the lender takes to close your loan, the higher costs loan you will be subject to.
→If you do have to extend your mortgage rate lock, ask the lender to do it for no charge. Most mortgage companies will gladly accept the cost of extending a mortgage rate lock for the opportunity to close your loan.
→Should you attain mortgage approval it will most likely be a “conditional mortgage loan approval“, there are lenders out there that claim to have final loan approval upfront, but that almost never happens in this credit market. What this means, is the mortgage company needs additional information from you to sign off conditions to release your file for final loan documents for a subsequent loan funding. Provide the necessary documentation to the mortgage company within 24 business hours ensures a faster close of escrow.