To apply for a mortgage, get approved and close escrow, you must have some sense of urgency. Whether you are buying a home or refinancing a home, your mortgage application needs to get moved up the priority scale in your life. If you don’t have that sense of urgency you may leave money on the table or worse, you could end up paying thousands of dollars more in extra costs due to your failure to meet critical timelines and dates.
Getting a mortgage requires an examination of your cash, credit and income. Providing the same documentation multiple times may seem repetitive; however it is a byproduct of obtaining a mortgage in today’s compliant bureaucratic world of mortgage finance.
Rate lock time frames
A rate lock means the lender setting aside a certain amount of money for you under certain terms for a certain period. For example, a 30-day rate lock means you must provide documentation to support the lender being able to close the loan in that 30-day period. Failure to provide the documentation in a timely manner can result in what’s called a rate lock extension, which could translate to thousands of dollars more for the same terms which otherwise could have been avoided if you got documentation to the lender more proactively.
The other challenge that inevitably will come as a byproduct of not having a sense of urgency is undue stress on the transaction that otherwise might cause you to not have a smooth process. Here’s the reality of it… getting a mortgage in 2019 is not pleasant; it’s very compliant, extremely bureaucratic and requires extreme vigilance in providing documentation and supplying everything the lender asks for to meet federal requirements. The separator amongst lenders is service, more specifically, responsiveness.
All mortgage loans today are backed by the federal government and as a byproduct the government says this is how you must do loans. As a result, some things like providing a pay stub or a bank statement or a letter of explanation about your desire to buy a property can be non-negotiables.
All the above things can be mitigated by having a sense of urgency. That means when the lender says jump it should not be resistance to jumping, but it should rather your thought process should be to say “how high”? Going into a mortgage loan process with that mindset will not only insure that your transaction closes on time, but that you can also meet the terms that you and your lender discussed with regards to rate, terms and costs.
Looking to get a mortgage?
Scott Sheldon is a local mortgage lender, with a decade of experience helping consumers purchase and refinance primary homes second homes and investment properties. Learn more at www.sonomacountymortgages.com.