Our New Mortgage Market
How can a buyer assure a smooth closing in the today’s market? There are numerous reasons and blame for the mortgage crisis they have been documented, discussed and argued about for the past weeks and months – that’s old news now. Today’s key issue is what can a buyer do to assure that their transaction will close and close on time. Unfortunately it is becoming more common for closings to be delayed and sometimes even terminated at the last hour due to financing. This shouldn’t happen!
Here are several things that you can do to assure a smooth closing:
1. Know your loan officer. It is more important now than ever for you to know the loan officer. There are many new faces in the purchase market lending business – they have moved over from the subprime market and the refinance market. That business is different from the “A” paper purchase business. Time is of the essence in the “A” paper business and that was not always the case in the subprime and refinance business. You want a Loan Officer that is and has always been focused on timely closings.
2. Know the loan officer’s company. Is the lender a broker, correspondent or banker? This can tell you the amount of control the lender has, the choice of loan programs and flexibility with the timing of the process.
3. Know the type of loan that you are using. The type of loan can tell you a lot. Is it a FNMA or FHLMC loan, a Jumbo loan or an FHA or VA loan? What is the amount of down payment on the loan?
4. Know your credit scores. There are 3 primary credit repositories that collect credit data and provide scores for almost all borrowers. Ask your Loan Officer for a copy of your credit report and be sure to know your credit scores. FNMA and FHLMC now have tiered pricing and loans with lower credit scores are charged higher interest rates than loans with high credit scores.
5. Monitor the status of the loan. You can eliminate unforeseen surprises with a loan only if you are monitoring the progress of the loan from the beginning to the end. Here are some questions that you should ask through the loan process:
a. Do you have all of the documentation required?
b. Have the appraisal been ordered?
c. Has the appraisal been received and what was the value?
d. Has the file been submitted to underwriting?
e. Are there and conditions on the approval?
f. Are the loan documents being drawn?
The market has experienced significant change and will probably experience more changes in the near future. By being proactive in the loan process you can detect issues early and help create a smooth closing.
Preferred Home Loan – here to help you close your home – on time!
Greg Burkett
281/657-0472 x301
For more information about real estate issues in Katy or West Houston contact Steve Reddell. He is a licensed REMAX real estate agent in Katy, Texas you can trust. You can contact him directly at 281-994-5173. You can also visit him on the web at Katy Family Homes.
Filed under: Economy/Market, Katy Family Homes, Lenders
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