Financing Facts: Mortgage Timing In Today’s Market

While the real estate market moves at the speed of light…the looming obstacle that can stop success dead in its tracks is: home financing.

While money isn’t always a ‘fun’ subject to talk about, it’s an integral component of a smooth transaction. After all, you can’t buy the right home without the right financing in place.

While every personal financing scenario is different, here are some top tips from our experience working with lenders, as well as from a recent article debuted on Realtor.com titled “How Long Does It Take to Get a Mortgage? Longer Than You Might Think”.

Note: ALWAYS get pre-approved BEFORE shopping for a home. There is nothing worse than falling in love with a home that doesn’t fit your budget.

Tip #1: Make NO Assumptions. It’s no secret that making an aggressive offer in terms of timing and price is THE way to get a seller’s attention. But if you overpromise and underdeliver – you could lose time and money and gain a whole lot of stress. Don’t assume your lender can complete the appraisal in 3 days or close in 21… ask first – for every offer you write. Appraisal and underwriting turn times can (and do!) change on a dime. We work closely with our lenders to make sure that our dream contract meets real estate reality. Realtor.com reports that 30 days is average, and in high-volume markets you can expect a 45-60 day close (ouch!).

Tip #2: Know What To Expect & When. The only thing worse than unmet expectations are un-set ones. You might assume your lender can lock your loan as soon as you go into contract – but chances are you will need to have your application complete and your disclosures acknowledged first. Or you might be planning to sign on the day you plan to close escrow… but did you know that the lender and title company need time to prepare you loan documents, as well as review, record and fund the loan? It often helps to establish a timeline and review it backwards and forwards – to make sure everything truly adds up.

Tip #3: Plan For Paperwork (And Lots Of It!) The only thing more certain in life than death and taxes… is mortgage paperwork. You will be asked for things you never knew existed – and you will need to provide them as soon as humanly possible. It’s the reality of lending today. While setbacks can occur from third parties involved in the transaction (employer verifications, tax transcript issues, etc.) – the #1 hold-up is borrower-based paperwork delays. The two things you can do to avoid this are 1) Locate all tax, income, asset, divorce, disability, and retirement distribution information upfront; and 2) Check for lender requests daily while in process – and respond to them within 24 hours whenever possible.

If you need a great lender – or would like us to meet yours – please don’t hesitate to reach out. Having your real estate agent and lender both batting for you every inning is the surest way to get a true ‘home’ run (pun intended!).

Mark & Jason

Resources Used:

How Long Does It Take to Get a Mortgage? Longer Than You Might Think

How Long Does It Take to Get a Mortgage?