Location, location, location! We have all heard this refrain as it is referenced for property and home values in the real estate world. It signifies what you should look for when you are in the market for a new home. Proximity to urban areas, shopping, good schools, good zip codes, etc are good metrics. In the mortgage world it is more like relationships, relationships, relationships. Creating a relationship and developing an understanding one is based on communication and trust. This process is steeped in frustrations so having someone who you can work thru the issues with is very important. First thing to know is that your Loan Origination works for YOU! They have an obligation to ensure that the transaction is fiduciarily feasible and sound for you. Even though you might want a cash payout for your finances even if it raises your interest rates, it has to be in your favor or a lot of red flags are raised.
Remember that your loan officer is in the middle between you and the underwriter. They can only set up your file with all the usual information (PayStubs, Bank Statements, Asset Statements, Home Insurance Declaration Page, 2 years Taxes Returns, etc) and then it gets put together in a form that the Underwriter wants to see. Then they start looking at your financial history and background and they start asking for addition information (Prior to Close Conditions). These need to be addressed and solved before the file moves forward. Now is not the time to balk at getting the information, or ask why or even fight about why these items are needed. If the underwriter asks for it, it is a good bet that the loan process will stop if they don’t have it!
Having your Realtor or the Seller’s Realtor call up the Loan Officer to discuss/yell about what is taking so long, does not speed up the process. Being open and flexible to move the close date based on how the loan is going makes the process easier. Being aware that there are things that affect the process every step of the way (like, not signing the disclosure documents in a timely manner or returning them, flood zone issues, title issues, getting mortgage payoff quotes is usually 5 to 7 day process). As you can see, there are many places that can be road blocks to an easy loan closing.
The paperwork needed has changed as well per all the regulations. Now there is Patriot Act documentation that has to be signed as well as all the disclosures. That is all the new regulations from the Frank-Dodd act, the CFPB rules and the fall-out from the mortgage meltdown. Remember, as frustrating as it is for you in getting through this maze of paperwork, it is that daunting for your Loan Officer as well.
In any relationship, it is easy to place the blame and to get antagonistic, which only exacerbates the problem or issue. Talking things over, asking questions, or even just following directions will go far in getting through all the frustrations. Remember, the Loan Originator has to do the best thing for you and your financial situation, even if that means telling you NO. You and the Loan Originator are a team, getting you into the home of your dreams. It takes the both parties to make it happen.
If you are having a hard time getting information or responses from your Loan Officer and before you start screaming and yelling, ask if there is a Transaction Coordinator assigned to your Loan Originator. Call and speak to them about what is happening. They can help you, they know your file as well as the Loan Originator. Before you jump to conclusions about non-performance, breathe and try to change contact methods as well. If you have been calling them, try emailing or texting. Try using non-antagonistic wording like “Just checking in for an update”, instead of “I need an answer and I need it now”.
Your Loan Originator handles hundreds of calls and emails daily and might be waiting for an answer from someone else. That said, your Loan Originator should also keep you up to date on what is happening on your file even though it might be nothing, waiting on the underwriting.
Being willing to work through the process, communicate and choosing how to communicate will all go far in building a lasting relationship in this, your most important decision in buying a home.
Call Capstone Mortgage and start to “create” a lasting relationship with a Loan Originator. Call Now.
Jonathan Burdick 