Set realistic expectations for your clients.
Guidelines are tightening across the board. The work of processors, underwriters, and closer departments are increasing to ensure loan quality. These new guidelines are effecting turn times and closing dates. In order to coach your borrower, you must know the loan type and the estimated turn times for that loan. Regulation Z has done away with quick closings. And guidelines are pushing closings further back.
USDA loans take twice as long to get from application to closing. These files are being underwritten twice; once at the company/broker and again at the regional USDA office in your area. Know up front what your time constraints are so your borrower has reasonable expectations.
Remember, the tax credit has not yet been extended. Loans must FUND prior to December 1, 2009 in order for the borrower to qualify for the tax credit. Borrowers can ammend their 2008 taxes with a simple form. I had a client received his tax credit in 3 weeks. It might take longer now that we are closer to the deadline, but it is supposed to be received within 6 weeks.
Talk to your preferred loan officer about realistic turn times to make sure no one is at a closing table without a package. Or more importantly, so no one is without a home while waiting on a closing.
Comments(0)