Going to Refinance what should you expect now
This entry was posted on 8/15/2007 9:03 PM and is filed under Loan Process.
If you have applied in the last week for a refinance there are probably a few things you should know from a consumers perspective.
1. Act Fast - Guidelines and rates are changing faster than anything in our industry. If you like a loan lock it in that night and don't pay a rate lock fee or application fee to lock in. Ask for confirmation from the loan officer that you are locked in... (keep in mind this does not mean that your rate is set it is contingent of full approval but at least you are protected should the program change)
2. Once you are locked in get your documentation and appraisal done as fast as possible. Again lenders are requiring that loans be in underwriting to be protected from product or pricing changes. If you drag your feet on the loan and terms change right now it is probably not your loan officers fault.
3. If you want to shop have the loan officer you are working with quote you up to 3 options and maybe look one other shop. Right now most experienced loan officers can get back to you within a few hours if your credit situation is not so stellar if your credit score is 660 or higher you should here back from us within 30 minutes.
4. Second mortgages- are disappearing and getting harder to qualify for.
5. Stated Income loans- requiring with most companies a score in the 600 there are a handful still doing loans under 600 but it is becoming a marked line.
6. MTA or Option Arms- Finally we are seeing this product disappear. This was a terrible product for most borrowers. IF you have high income and are investor and know how to work this loan than you still have a few options left.
Still this market has a few bright spots in it...
If you can save a few months of mortgage payments in the bank it will probably improve your chances at getting approved.
The market is about done with the craziness, my thoughts are you will see a few more lenders go belly up before it is all over with.
