How to reduce mortgage coverage for 2 to 3 weeks

Chasing the master's American dream is still alive.

Even if you have to mow the lawn in the summer, raking the leaves in the fall and shoveling snow in the winter, the family ownership is also good. Don't forget to clean up the garage in the spring, and at least once a week chasing neighbors' dogs out of your yard!

However, recent surveys have shown that there are several major frustrations in buying a home. One is all paperwork involved in applying for a home mortgage, and the other is 6 to 8 weeks after you complete all paperwork and are waiting to underwrite and approve your home loan.

The past was the practice of "wild west" lending in the past. Everything is what they call a "full text" loan. This means that banks need some paperwork and they can do it to limit risk.

Therefore, in our current financial environment, don't hold your breath and wait for a shortcut on paper. However, if you know the following little secrets, you can reduce the loan approval process by 2-3 weeks.
Why it takes a long time to get loan approval

First, let us know the process of getting a mortgage.

As you can imagine, it takes more effort and time to complete all the paperwork before you can even submit the loan to the money bank. If you have all your ducks, because you and your loan officer can get this in about a week. [Unless you are like my brother, it only takes three weeks to find your checkbook, who knows where he puts these nasty bank statements!]

Once the paperwork is completed, your loan officer will submit your loan application to the capital bank and then end the long line of approximately 300 other loan applications in front of it.

After waiting in line for about a week, your loan application will be the responsibility of the fund bank underwriter and will be responsible for ensuring that everything is in line with your application. The underwriters' job is to ensure that there are no violations - they are responsible for ensuring that banks are least at risk when funding your home loan.

As a result, the underwriters comb your mortgage application through fine teeth and usually return your loan to your mortgage broker and get "conditional" approval.

This can sometimes get crazy. This is what I mean.

A typical and understandable condition might be to simply verify that you are still employed, or that the $20,000 you have shown on your previous bank statement still exists. But there are things you won't expect to come up with that may disappoint you. For example, this is a real story that happened this week...

A couple found their dream home in an upscale neighborhood, where there is a Homeowners Association [HOA]. The HOA is responsible for the front yards of all residences and public areas within the subdivisions. The problem arises when the underwriters want the HOA to take on $2 million in liability insurance instead of their $1 million policy.

Yes, the insurer believes that it is perfectly acceptable to put it in the HOA business and to double the amount of compensation for someone who falls down and falls in a public area and sue for $2 million. 1,000,000. Ok, guess what? Do you think that HOA will double its liability insurance so that one can buy a home in its sub-sector? You are right, if you ask them, they will sneer.

That is just a story. There are hundreds of ridiculous stories like it. But these are the things that hold your loan under our current economic conditions.

Let's review... a week to complete the paperwork... a week to get the underwriters back to the conditions... one week or two trying to meet the conditions... this is 4 weeks so far.

So now back to the drawing board, your loan must be submitted to another funding bank. Therefore, in your loan, you will only wait in line after the other 300 loans you obtained earlier.

So another week was opened. Now you need to wait 5 weeks. Let us assume that you have now foreseen all the conditions that the bank is asking you to provide and will easily meet these conditions within a week. Now, start 6 weeks after you start.

Then, the stupid bank actually wants you to get a home assessment to verify the actual market value. I mean, if the value of the home you bought is not higher than the loan, they don't want to give you a mortgage! [Don't miss a good day they don't care, or can you actually pay for the house?] So the assessment will take a week or more. guess what? You have been 7 weeks now.

Cut the secret of mortgage coverage for 2 to 3 weeks

Ok, are you ready to reduce the small secrets of mortgage underwriting and loan approval time 2-3 weeks?

This is a two-word secret...

Agent bank

The financial dictionary definition of the agent bank:

Banks have limited access to certain financial markets, so they must use the services of another bank to make certain transactions. The correspondent bank is usually small. Agreements with other banks allow it to provide the necessary services to account holders without incurring the cost of meeting certain requirements that large banks have already met.

In other words, they have the money to lend you a mortgage, but they may not be able to meet the federal government's long-term hold of mortgage notes. As a result, they reached an agreement with a larger bank to become their "virtual branch" so they could underwrite and approve mortgages on behalf of the big banks.

What does it mean?

The way to speed up loan approval is that the co-trusted bank [your loan officer] is underwriting internally. Therefore, you completed the paperwork and purchased the person who underwrote and approved the mortgage. Therefore, once the paperwork is completed, you have been approved. No one has to approve you. When your loan officer completes a paper job to complete the transaction.

It appears in the capital bank as an approved and eligible loan. Just like magic, it can reduce the weeks you wait for!

And considering the timeliness of mortgage approvals - when interest rates fall, more people naturally apply for home loans, the seasons become different, more people move and want to enter the house before the start of the school year.

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