It’s Hard To Fit In There!

August 6th, 2010

Sometimes people just can’t squeeze it all in. Right now, it is hard for banks to fit all the business they have through their systems. Now, I am the first one to pile on the banks for their bureaucracy and inefficiencies. However, in the case of any business, when you suddenly get an onslaught of 10 times the business that you normally get (that is a 1000% increase folks!) no one will be able to handle that efficiently.

So anyone that wants a mortgage right now will need to be patient. Banks will prioritize purchase loans over refinance loans, since the purchase loans have contractual deadlines.

And for all of the people getting a refinance right now who want to complain about how long it takes, please think about how your performance would be effected if you had a 1000% increase in your business, whatever that business may be. Right now refinance applicants need to kick back, wait, turn in whatever paperwork is requested, and look for the call that says it is all finally over and settlement is ready to happen. Complaining about it only makes it worse, and will not speed up the process.

The most important things to remember is a high volume refi mortgage market are:

-deal with someone reputable, that you trust, have worked with before, or were referred to.

-make sure your interest rate is locked-in for a long enough period to cover the loan processing time frame, which for a refi is usually going to require a 45 or a 60 day lock-in.

-turn in all paperwork immediately, DO NOT DELAY.

-when the appraiser contacts you to gain access to your property to do the appraisal inspection, drop everything and get them in the home right away!

-consider working with a mortgage broker, a small bank or a mortgage banker, since large banks are notoriously taking the longest time to underwrite loans, by a wide margin.

I know it sounds like a hurry up and and wait situation, and it is. But, if a bank will take 40-45 days or more to process, underwrite, approve and prepare closing documents, why give them an excuse to miss the lock-in deadlines? Then they may tell you that since the lock-in deadline is past, you now must pay a higher rate. So…keep pushing the ball back in their court, and “hurry up, and wait.”

Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.

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