The Time Crunch for a Loan
Posted on | May 27, 2009 | No Comments
It’s an interesting time for those of us who have been in the home loan business for awhile. It wasn’t that long ago you could bring a loan in on Monday and get it closed by Friday of the same week. There are times that is still happening but it is farther and fewer between. Part of the reason for this is good for the consumer and good for the lenders; though as loan officers it’s hard to see or acknowledge that sometimes. Because of the looser regulations and restrictions of the past, many people got themselves over their heads and into mortgages they didn’t understand and in time couldn’t pay. This same lack has led many lenders to go out of business or have to sell out to competitors; ultimately leading to the mortgage crisis we are still going through today.
To counteract this trend, regulators, investors and lenders alike have had to reenact many old guidelines and even tighten them further, which make the processing of the loans that much harder and time consuming. Some have also had to trim their staffs so when many loans come through their systems there are not enough personnel to process the loans. Fortunately, we have been able to hold onto our staff and still have processors and underwriters that have worked for this company for over 30 years. With that said, the processing is taking longer so everyone involved in the process needs to allow for the process to take place. If you plan ahead and know what documents you need and give them quickly then loans are being closed almost as fast as they used to be.
Comments
Leave a Reply