Melissa's Mortgage Lowdown
Why the heck is it taking so long to get my mortgage closed? It never took so long before? What is wrong with the bank? Heard these questions recently? Perhaps with some stronger language? I am sure the answer is, Yes. Let me help you to understand why…
First and foremost, it is vital to understand that banks are in business to make money. That being said, they staff up to a projected volume of business. Therefore, when it gets busier, the same number of people have to process that many more loans. It is impossible to staff up as needed. Plus, qualified underwriters are hard to find!
When interest rates started going up quickly after the election many more applications were submitted by borrowers wanting to lock in low rates immediately. Needless to say banks got backed up. The holidays along with vacations, made the problem that much worse. Basically rate hikes and the holidays couldn’t not have come at a worse time! Add the delays with TRID and it is taking much longer today to get your loan approved and closed. Appraisers are getting slammed and bank attorneys don't have enough hours in the day to close their loans…one can only drink so much coffee!
Don’t panic just yet- Many banks are extending rate locks for free, so while time is lost your rate is most likely not. Patience is a great virtue to have these days. And it is getting better as higher rates have slowed new applications. One could call it a double edged sword...
photo: mn-houses