Ask Your Lender NOW!
It is more important than ever to know where your lender stands on the issues summarized below. These are TRUE and VALID concerns that can affect closings and thus money in your pocket. I encourage you to openly discuss these issues with your lender on a consistent basis as things are constantly changing in this crazy market.
1. Appraisal Issues
The new appraisal management systems that are in place have been especially tough on everyone in the industry. Some of the management companies are having appraisers who are unfamiliar with the area complete reports and this has created a lot of value issues. Appraisers from Bertram are not necessarily familiar with Westlake Hills. Ask about your lender’s appraisal management processes. Where is the management company located? A local appraisal management firm is ideal. They are closest to the actual appraisers and can screen them closely to ensure they are experienced with a given area.
2. Warehouse Capacity Issues
If a lender runs out of funds on their warehouse line, your closing could be delayed for days and even weeks. The entire process could have been smooth but if you cannot get the loan funded, nobody is happy and you look bad! Don’t let this happen to you! Nothing is worse than closing and not being able to get keys for several days because the lender is out of money and cannot fund the loan. It is important to know if this is a potential issue with your lender. If it is, be prepared for delays. They are happening every day. If you are working with a broker (as opposed to a mortgage banker), they will not have a warehouse line and are dependent upon the banks they are selling the loans to to fund loans. This can be tricky as well since it adds another step to the process when the file has to go to the wholesale bank to be underwritten and approved.
3. Underwriting Issues
Three weeks in underwriting can kill a 30 day closing. Ask what turn times are! Are files underwritten in-house or do they have to be sent off-site?? Some loan products take longer than others so be sure to be specific on your scenarios. Can rush underwriting be accommodated? Let’s face it, we all need a rush every now and then
4. Closing/Funding Issues
Again, it is important to know how the process works with your lender. Are closing documents drawn in-house? What is the turn time to generate and deliver closing documents to the title company? The more than takes place in-house, the more control the lender has over the whole process.
If your lender is not giving you top-notch service, we would love the opportunity to show you how we do things! With the mortgage business being as volatile and unpredictable as it is, it is more important than ever to work with a lender than you trust and can depend on to get your deals closed. Thank you for your business and we look forward to working with you in the future!