Every mortgage application has a life of its own. Some live a long time, some not so much. I just closed on a loan that took less than 4 weeks to complete. And I just re-opened a file that started in June and still may not close until the end of October. So what makes some transactions more successful than others?
Here are some factors that will make the application process take longer?
• Resolving Credit issues
• Income verification issues
• Property condition and Home inspection issues
• Home Value and other Appraisal issues
• Not getting all the necessary documentation in a timely manner
• Sourcing the monies to be used for the down payment and closing costs (this is the big one)
And here are the factors that will make the application go quicker?
• Strong credit
• Sufficient income and strong reserves
• No issues or minor home inspection issues.
• No issues with the appraisal
• Borrower co-operation in delivering all necessary supporting documents at time of the application
It is my responsibility as a professional Mortgage Officer to set the expectations for my client…the borrower. I take the time to educate my client on each step in the mortgage process, what I will do for them and what they must do to help make the application move along as smoothly as possible. Perhaps it’s my teaching background that helps the borrower understand whether their application will pass or fail. With good information there is better opportunity for everyone to succeed.