In some lender shops before the loan reaches the underwriter it has to go to the set up department/person (and sometimes another step!) By the time it gets to the underwriter eithier 3-4 hours have passed or 24 hours (depending on the lenders turn time).
Incomplete files slow down the mortgage process. Lets take the Uniform Residential Loan Application (URLA or 1003) for example. This is the most neglected document in the loan package. The sad part is the entire file is built around it.
Example: Part II: Property Information & Purpose of loan. There are several parts in this section that can slow your file down at the initial set up stage in the Lender Shop. I've seen set up people call Mortgage Brokers on a DAILY basis regarding the following sections:
Subject Property Address (see above): Is it a Street or Drive? Zip Code? etc... - At initial set up some very important documents are pulled and if they don't have the correct subject address & the borrower's current address this will slow your loan down (not to mention the title company and the appraiser- Your appraiser and title commitment will have to be corrected and reviewed AFTER it's corrected...more time wasted!)
Property will be (see above): This section is very hard to prove otherwise...what do I mean? If you mark this section: Secondary or Investment, you will have a very hard time trying to prove otherwise later. I'm not saying lenders won't do it...I'm just saying that you will definitely need supporting documentation to support the change (like utility bills, etc...)
Complete this line if this is a Refinance (see above): This section is often left blank and if the borrower owns several properties it takes time to figure out which one! If this section is blank chances are the liabilities section is also incomplete.
These are just a few sections that slow down the Mortgage Process, but believe me there are a lot more. Before you hand over your file take a minute to look it over.
D. Bass
Mortgage Underwriter & Trainer
Questions: asktheunderwriter@alphamortgagetrainer.net
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