Five Tips on How to Close Your Loans Faster
Want to Close Loans Quicker?
In the new world of mortgage disclosures, HVCC and ridiculously overzealous underwriters, timeframes to close a loan have grown. It is not uncommon to have a closing take 30 plus days. But in the midst of all this, we have found some ways to make the process quicker and smoother for us and our clients. Consider the following:
1) Take a complete loan application – while this may seem very basic, it is easy to forget to ask something simple that will trip you up. For example, a recent client of mine that I had refinanced about a year ago worked on base plus commission. I never asked about his income and it turned out that he had switched up the compensation to a slightly higher base and no commission. In this case, he had a 25% reduction in income and all of a sudden didn’t qualify.
2) Ask if either of the spouses have any “side” businesses. With every lender pulling a 4506, even a small loss being counted against someone can trip up a deal.
3) Run the address through USPS to be sure you have the address completely correct. The ripple down affect from the appraisal, title etc…can drive your processor crazy.
4) Make sure your client knows (make a phone call immediately after sending the disclosures) the importance of returning the documents quickly. Go over in detail on the phone with them what you need (I.e complete bank statements etc…)
5) Make sure they know what has to happen to get the appraisal ordered and the importance of getting the appointment set quickly. Many lenders have gone to these crazy email acknowledgements (to transmit the TIL) and unless the client knows to look out for it, there will be delays.
Hope this helps…..more change is on the way. How you adapt on a weekly basis will determine your frustration level as regulation weaves it way into our lives with ever more vigor!