For real estate agents and attorneys, the phrase “time is of the essence” highlights an unparalleled importance on part of the process that manages the receipt and response to a purchase agreement.
Likewise, mortgage professionals also utilize this phrase for emphasizing the critical process of facilitating the loan process within an allotted lock period.
Most banks and consumers commit to a 30-day rate lock so as to minimize the risk of escalating interest rates during the loan process. This is especially true with the historic volatility in the mortgage-backed securities market.
30 days would be ample time to process a loan if we were strictly speaking business days; however, one must remember that the lenders don’t function on weekends and holidays.
Other things that can delay the loan process are stricter lender guidelines which require a greater reliance on the human decision-making process; underwriting departments with insufficient personnel due to a ravaged industry; increase in mortgage applications due to falling interest rates; and seasonal variances on scheduling of all vested parties (i.e. title company, appraiser, survey company, inspector, builder, etc…).
If one would have locked a loan for a refinance prior to Thanksgiving Day, there would only be 12 actual days to process the loan when you account for weekends, holidays and the 3-day Right of Rescission.
Completing the loan process within the 30-day lock expiration is extremely important as lenders are more decisive on declining borrowers who are not committed.
Be proactive and follow the guidance of your qualified mortgage professional so as to minimize and eliminate the risk of costly re-lock and/or extension fees. Time is of the Essence!
If you have been stranded by your loan originator to survive on your own in a maze of changes, The Barath Group gladly accepts stranded clients and their mortgages. Contact us today.