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There are many considerations when you purchase or
refinance your home. The current property value, immediate equity
in the form of a down payment, or equity gained from years of
owning your home, current credit standing, and the cost associated
with purchase or refinancing your home. In some instances,
consumers may have mortgage loan lenders and brokers compete for
their mortgage loan business. As you have a greater variety of
mortgage loan rates and terms to choose from.
Generally, a purchase loan is normally completed within 30
days. To refinance a loan may take up to 45 days or more,
depending on the volume of business at the lender or broker at the
time of your application. The key to expedite your purchase or
refinance loan, is to have all the paperwork in on time.
Each lender or broker has their own set of rules and
requirements above and beyond Government Regulations. Some lenders
or brokers will require more documentation and verification than
others. If your paperwork is incomplete, or you wait for several
days to send in the requested documents. You may find yourself
extending past your interest rate lock period. Usually, this means
one of several things are about to happen.
1. The lender may extend your interest rate lock period without
an increase in points or interest rate.
2. The lender extends your interest rate lock period, BUT, you
will need to pay a modest increase in points or interest rate.
3. Worst Case Pricing. Your interest rate goes to the
current interest rate available. In addition to any points you are
currently paying.
It is strongly recommended that you provide all requested
documentation immediately. No one wants to increase the cost of
doing business. It creates problematic situations for everyone
involved. Not to mention the emotional upheavals. Stay in touch
with your lender or broker to monitor current and projected
progress, scheduling, and situations.
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