Smart Borrower Blog

Keep your home loan from disappearing in to thin air

Aug 20th, 2007 @ 8:43 PM by MortgageMentor

Over the past week and a half I have personally seen more than a dozen home loans vanish in to thin air.  Changes to underwriting guidelines, increases in interest rates, and the caving of lender after lender have left numerous loans high and dry like little orphan Annie.  Unfortunately in this story a Daddy Warbucks has yet to be identified.  If you are in the middle of securing home financing there are several things that you can do right now to help expedite the funding of your loan.  Take the initiative to finalize your loan before the program you’ve chosen vanishes in to thin air.

If you are considering any of the following loan types it behooves you to get them done soon – they are endangered species in the market today:

  • Using stated income or no income documentation loans
  • Financing an investment property
  • Using a negatively amortizing payment option loan (also called an Option ARM)
  • Using an extended repayment period loan (such as a 40 year loan term)
  • Borrowing more than conforming loan limits allow ($417,000 max, depending on your home’s location)
  • Obtaining financing with a credit score below 640

If that sounds like you here are a few tips that can help you finalize your loan quickly:

  • Expedite the appraisal.  Schedule your appraisal quickly and ask your appraiser to deliver it to the lender within 3 days.  If that is not possible you may want to consider using another appraiser.
  • Deliver all conditions and documentation to your lender the same day they request them.  Ask your mortgage professional for a detailed list of each item necessary to fund your loan; and deliver those within 24 hours back to your consultant.
  • Ask for detailed, regular status updates.  Ask your mortgage professional for updates regarding your rate lock, your loan approval status, and any outstanding items needed before signing loan documents.

Above all, don’t torpedo your own loan by dragging your feet.  Too many borrowers who lose financing opportunities blame the mortgage professional when they have acted in a less-than-expeditious manner.  In this tough lending environment it is crucial that you not only respond quickly but that you push all parties involved to finalize your loan as soon as possible.

Remember, its your home loan – take responsibility to get it done; before the market decides that your loan is no longer available.

One Response to “Keep your home loan from disappearing in to thin air”

  1. Hi,

    Thanks for sharing this information. I think lots of people will find this very interesting and helpful especially for those who are engaged in home loan. Anyway, great post.

Leave a Reply