Long Waits For Refinance, Refinance Turn Times - Real Estate ...

Interested in refinancing and taking advantage of today?s record low mortgage rates? You might need to hurry up and wait. Due to increased demand and the many new regulatory hurdles put in place since the housing meltdown it can often take weeks if not months to close a refinance loan these days.

Most banks and mortgage lenders don?t publicize their turn times, or how long it takes on average to get from application to closing, but there are many indications that the approval process is taking longer than in years past. First, you don?t have to go far within the industry to hear grumbling among professionals about how time consuming it can be to get to closing. There can be waiting involved in each stage of the process from the appraisal to processing to underwriting to scheduling the closing. A second clue is that lenders are advertising longer rate lock periods. Today on ForTheBestRate.com, a mortgage rate research website, only half of the advertisers posting North Carolina mortgage rates listed that their pricing was for a 30 day lock, once the standard closing window. Most of the others were offering a 45 day rate lock, and one bank even lists a 60 day rate lock.

So what does this mean to you if you are hoping to refinance and want to make sure today?s low rates don?t pass you by? First, work with your mortgage representative to understand what to realistically expect. If closing quickly is important to you ask about turn times when shopping around for loan offers, and take the answers into consideration when selecting which lender to work with. If you don?t mind waiting a bit longer you can more heavily weight other factors such as pricing and service levels.

Once you choose a representative and are ready to lock in a mortgage rate ask how long the pricing is locked in for (generally 30, 45, or 60 days) and what will happen if the loan does not close on time. Rate locks can generally be extended for a fee. Some lenders will cover these fees for their clients, and others might charge some or all of this fee to the borrower. Be sure you know up front how this will be handled in your case and whether you are comfortable with the lender?s policy.

As the borrower you can play a role in helping things move quickly or allowing them to drag on and on. Try to be as available as possible and let your mortgage representative know how best to get in touch with you, whether it?s by email, phone, or even text. Respond to requests for additional information or documentation with as little delay as possible. It is common for mortgage applicants to feel frustration when asked for some new paperwork after weeks of waiting, but try to remember that the mortgage team was busily working on other loan files while yours was in line. If you?re concerned about how things are progressing don?t hesitate to reach out to your representative for an update. Hourly phone calls might not be helpful, but checking in every so often will likely put your mind at ease.

During the process it is of utmost importance that you continue to pay your existing mortgage on time every month. Don?t cancel any automatic payments or bank drafts you have set up until you receive confirmation that your loan has been paid in full by your new mortgage. If you skip a payment because you thought the new loan would be closed before the due date you run the risk of a late mortgage payment interfering with your ability to qualify for the new loan.

If you are in the market for a mortgage to buy a home rather than refinance an existing loan it might be comforting to know that many banks and lenders will prioritize purchase transactions, and often are able to get them to the closing table much more quickly. This is because when buying a home a severely delayed closing date could result in a cancelled sale and the borrowers missing out on the property, where with a refinance the stakes are rarely as high.

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