I don’t normally write about this sort of thing – but I think we need to have a quick “fire side chat.” By that, I mean that I think it’s important for you to know what’s really happening over here in Mortgage World, behind the curtains… and I want to suggest that right now, more than at any other time – if you are getting a mortgage, you need to take our advice.
Mortgage World is slammed. Interest rates dropped, and people decided to refinance. We haven’t had that many refinances in the last year. But PMI rates have gone way down since 2016. I just saw a monthly PMI payment of $246 go all the way down to $69 a month.
This monthly PMI saving, along with the ability to pay off Student Loans (or do any number of things with the Equity in your home)… means most of your neighbors have been calling.
It was a late Spring – meaning homes that would typically be on the market in March or April came on the market in May and June, as rates started dipping. The Wall Street Journal confirmed today that the, “Average rate on a 30-year, fixed-rate mortgage was 3.75% last week, down from 4.94% in November.”
What does all of this mean for a Home Buyer (or Home Seller for that matter)?
You Need To Take our Advice.
So here are 3 things we strongly suggest follow as you navigate through the mortgage process right now.
ONE: We work with some of the Top Realtor Teams in the State.
If we say, “Hey, you have a complex financial picture. Please work with one of our preferred Realtor Teams…” Take Our Advice.
We have a first time home buyer who decided to use her co-workers sister’s cousin who has only sold 6 houses in the last 4 years… We told the Agent that it is taking 7 full days to get an appraisal back, and USDA is on an 12 day turn time.
They wrote a USDA contract that we received on the 29th of July with a Due Diligence date of August 7, with a close date of the 21st. My Dudes, in a SLAMMED Mortgage World, that is T-I-G-H-T. We might get it done, but everything has to go perfectly.
TWO: If we say, “Sign this Disclosure, CD, Intent to Proceed.. TODAY,” don’t wait. Days matter in Slammed Mortgage World. If we do the disclosures, and send them to you on the 29th of July – but you don’t get around to signing the Intent to Proceed until the night of the 31st… I can’t order the Appraisal until the 1st. If you have Due Diligence of the 7th – I might not get the appraisal back in time!! YIKES! That could cost you a couple grand!
In Slammed Mortgage World, we don’t physically have the time in the day to rush everything just for you. We had people working in our home office, sending revised CDs out last night at 10:30. We are doing our part to get you to closing on time. Take our Advice. When we say we need something no later than “X-Date,” it’s not a suggestion.
The same thing is true when we ask for Bank Statements or pay-stubs. If you can’t get them back to me within 24 hours – raise your hand and let me know. Days Matter over here in Mortgage World.
THREE: In NC we close using an Attorney. Just like the Appraisers and Mortgage Lenders, they are all handling refinances along with Purchase transactions, so they are also slammed.
If you are thinking you might get a good deal by allowing your Cousin’s Wife’s Uncle close you “on the cheap…” Take Our Advice, it’s not a good idea! Just like everyone else involved in the transaction, we need to work with people who focus their attention on Real Estate Transactions.
We have to approve every Closing Attorney – please don’t add to an already complicated situation. PLUS, Title work has to be actually underwritten. If you are working with a closing attorney who gets us information back 7 full days prior to closing, we may not close on time. We have to send it to Underwriting, and meet the mailbox rule for Closing Disclosures.
Do yourself a favor, check with us and use an Attorney who has already gone through the vetting process. They will also have the safeguards in place so that we don’t end up with an unfortunate wire transfer fraud situation, which is on the rise! It’s just safer!
If you have questions about how long it takes to close on a mortgage right now – call us. CAN WE close a loan in a couple of weeks? Yes… most of the time. However, if you are applying for a USDA Home Loan, with a MCC from NCHFA – we will need to take a full month.
Take Our Advice, from Slammed Mortgage World, we suggest that you get your paperwork seen by the Underwriter prior to writing an offer. Getting fully pre-approved will make ALL of this easier. Call Steve and Eleanor Thorne 919 649 5058 to start the Mortgage process today! First the Loan, then the Home.
Originally Post at NCFHAExpert