What You Can Do To Help The Mortgage Process

This month, we’ve had two different clients that didn’t get their closing package until the day before closing and the HUD wasn’t ready until a few hours before the closing. Starting in August, these loans wouldn’t even have been allowed to close (new rules we addressed in our update a few weeks ago where we explained that lenders will be required to provide the final HUD to buyers three days in advance of closing). It is my team’s responsibility to get loans processed timely and make sure closings happen efficiently and I own that responsibility. There is nothing more displeasing, and stressful for all involved, than when there are last minute issues that have to be addressed the week of closing. But we are all on the same team (mortgage loan officer, borrower, seller, agents and attorney) and everyone wants the same thing – an efficient on-time closing.

For the mortgage process to work, accomplishing the end goal, there has to be cooperation from all involved. In both of these scenarios where issues were still being addressed at the last minute, we did not get timely help from our borrowers, following instructions and getting documents provided to us – and one of those deals was a three week turnaround from application date to closing date.

We have an incredibly efficient process and we communicate very clearly from start to finish. We encourage timeliness in every facet.  But if we don’t have full cooperation from our borrowers when it comes to providing documents and returning disclosures, we are limited in how quickly we can make progress. What can you do to help? Here are a couple of suggestions:

• Let your clients know how important it is to provide all documents requested and the importance of providing them quickly.
• Encourage them to respond quickly to any follow up requests and to sign and return disclosures immediately.
• Remind them that they are responsible for obtaining homeowner’s insurance and to go ahead and get that set up the week their contract is accepted.
• Provide the final contract as soon as all signatures are obtained.
• Order a timely home inspection. We typically hold up the appraisal until the inspection is complete and acceptable. So the sooner the inspection is done, the sooner the appraisal can be done.
• Make sure the closing attorney is either on the contract or identified soon after contract acceptance.
• Go ahead and schedule closings (time and date with the attorney) well in advance of the week of closing.

These are just my thoughts on a couple of things that I believe will assist the mortgage process. I’m open to any suggestions you may have as well – and this goes for my end too. It’s our job to get to closing on time and as efficiently as possible. When we work together to this end, it is a win-win for all. An encouraging word from you requesting a timely response from your buyer regarding all things mortgage related, can go a long way to making the mortgage process much smoother.