We are living in a time where the pandemic has disrupted the entire globe. Unfortunately, many lives have been lost. Many people are currently out of work, begging unemployment to pay them. While the pandemic has been a dark cloud looming above us all, there are a few silver linings to it. For the mortgage industry the pandemic has caused us to reevaluate how we conduct business. Traditionally, the mortgage industry was reliant on in-person meetings and in-person signatures. In a world of mandated social distancing, things had to change and our industry had to evolve. One of the fortunate outcomes of this forced evolution is that the occasionally burdensome process of getting  a mortgage has become easier. The team at People's Choice Mortgage is here to shed light on mortgage timelines, potential delays, and ways to make it all easier.

Technology is Helping Speed Up the Mortgage Process

Technology has helped streamline and quicken the mortgage process. The age of social distancing has forced us to make use of technology to the fullest extent. Getting a mortgage requires a lot of paperwork and a lot of signatures. Doing this entirely through paper makes it difficult and cumbersome. Thankfully, new digital lending tools have helped to dramatically decrease the time it takes to close a mortgage. 

ICE Mortgage Technology tells us that new digital lending tools have significantly reduced the amount of processing times. The data shows that the average time to purchase a mortgage decreased from 57 days in January to 53 days in February. It dropped even more in March to 51 days. Refinancing times have also dropped significantly with an average of 59 in January to 52 in the following months. This is huge news, and all thanks to new technology. As time goes on, lenders are continuously adapting to new forms technology to assist the mortgage buying process. 

Common Delays in the Mortgage Process

Again, mortgages are complex and there is a lot that is involved from application through closing. At any step in the process there are a lot of things that can cause a delay. 

• Lenders are Overwhelmed. If there is a high volume of mortgages you should expect some delays. The person working on your loan could be swamped in other applications. This is a common experience as many rushed to refinance in the midst of the pandemic.

• The Home Inspection Reveals Hidden Problems. If there is a problem discovered when your home is being inspected, the process of obtaining your mortgage could be delayed. This usually forces the buyer and seller to discuss repairs, lowering the price, or even cancelling the transaction. 

• Unanticipated Changes to Credit Report. Credit is critical to getting approved for a mortgage and for it to close on time. Unexpected changes to your credit could cause delays in your application. It’s best to not open up a new credit card or get a new loan, otherwise you could harm your credit. Save any big purchases for after you have already closed on your brand new home. 

• Unanticipated Large Deposits or Withdrawals. Having stable finances is important for the mortgage process. Large payments or deposits are suspicious because they could indicate you borrowed money or had to make a large payment. Lenders are also faced with requirements to make sure that all of your income is legal. Any new sources of income would have to be investigated by your lenders, which will take precious time. 

• Problems with the Final Walkthrough. If something is wrong with the property in the final walkthrough the seller may be required to fix the issue. This could lead to your application being delayed.

Ways Make Sure Your Mortgage Closes Efficiently

Of course, there are ways you can mitigate these delays. A good start is to make sure you have any needed paperwork in advance for your lender. You should avoid applying for any new loans or credit cards so that your credit report doesn’t change. In addition, you shouldn’t cosign a loan because it forces you to also be held responsible for their debt. It is also important that you stay with the same mortgage lender. If you switch lenders you will have to do numerous steps in the mortgage process. Sometimes this is the best option if you are not getting a good deal, but tread with caution. 

One of the best things you can do to prevent unanticipated delays is to trust your mortgage broker. We care about our clients deeply and know how life-changing it can be to buy a loan. We will do everything in our power to advise you on how to get through the home loan process as easy as possible. Nothing makes us happier than the day you close on your home and get the keys to your new dream house. Work with a professional mortgage broker who has your interests at heart and trust their guidance and advice. 

Final Thoughts

In some ways, getting a mortgage has never been easier. New technologies and processes are decreasing the time it takes to close a mortgage. This is great news for anyone who is contemplating getting a home loan. Buying a house is a big decision and any ways that the process can be simplified can save stress and worrying. Even though the process of applying for a loan can be cumbersome, in the end, it is well worth it. Buying a home is a lynchpin of building wealth for future generations. It is essential to work with a team of professional mortgage brokers who understand the process inside. Trust us, it will reduce stress and help you enjoy your home buying journey. 

Mortgage rates have been near historic lows for a long period of time. This is a great time to get a mortgage or refinance a home loan. A low rate on a mortgage or replacing your current home loan with a lower rate is a smart move to make. It can save you a lot of money over the life of your loan. If you are considering buying a house or refinancing your current mortgage, it really is worth trying. 

If you are wanting to take advantage of the current rate environment, contact us! The team at People's Choice Mortgage is here to help you through every step of the process. We offer a complimentary mortgage qualifier to anyone who is interested in applying for a home loan. This will let you know exactly where you stand and your chances of getting a loan right now. However, even if you do not think you are in the position to get a mortgage immediately, you should still contact us. Our professional mortgage brokers are here to help you know matter where you are in the process. We will give you guidance on what to do to improve your chances of qualifying for a mortgage in the future.