Well folks, things have certainly changed in the last 6 months to a year in the Mortgage Industry.  There are quite a few stories about how the market, guidelines, documentation, etc. are changing but one thing that has not been touched on is the overall mortgage experience.  There are still many qualified borrowers and many qualified borrowing situations.  Even though these borrowers meet all of the qualifications they will still be drastically affected by the market. 

The remaining mortgage banks are being ultra conservative and very careful!  Those that are still in business are going through extremely long delays because of new procedures that check and double check all files before an approval is even issued.  Exceptions that would have normally been made with ease a year or two ago are no longer being made or need second level approval, which takes even more time.  Each mortgage bank that is still in business may just be one default away from closing their doors.  With all of this said, what can you expect from your mortgage experience should you be in a position to purchase or refinance?

Longer Turn Times - Our office has always been very quick with closings.  That doesn't matter anymore.  The banks are taking 5-6 business days to issues approvals on full packages and 3-5 days to sign off follow up conditions.  Expect longer underwriting, expect to write letters of explanation for items that need clarification, and expect longer closing cycles. 

More Documentation- If there is even a hint of a discrepancy, typo, wrong address, etc. Mortgage Banks are suspending the loan first and asking questions later.  In years past, they would issue an approval with a condition for clarification.  Address the problem up front so it does not hold you up.

I's dotted and T's crossed - Literally, detail is the key!  If there is a potential issue, it needs to be addressed with a letter of explanation in the initial loan package.  Don't wait for an underwriter to bring it up.  Address it up front so that it does not become a bigger issue with more support documentation needed.

Now it is more important than ever to have your ducks in a row before you submit your loan for underwriting.  Now it is extremely important to have an experienced loan officer.  I have a new checklist that I include with every file so that we can avoid as many conditions as is possible.  If you miss one you may have to wait another 3-5 business days before it gets signed off.  As with anything, fool me once shame on you, fool me twice shame on me.  From here on out, our files will be well detailed and packaged so that we have as few conditions as is possible.  This is just the way things are in this market.