Q: I am refinancing a rental property in order to get a larger down payment for the purchase of a new primary residence. It seems like it’s taking forever! Why does it take so loan to refinance? Why am I being asked for more statements? Can I close my purchase loan faster than the refinance?

A: NOT ALL REFINANCES ARE TAKING MORE THAN 30-45 DAYS! Where you go for your loan CAN make a big difference in closing time SOMETIMES and I think IT MOST ALWAYS MAKES A DIFFERENCE IN RATES AND COSTS IF YOU CALL ME BEFORE YOU DECIDE ON A COURSE OF ACTION ON BOTH REFINANCE AND PURCHASE LOANS! Fyi: We ALWAYS offer options for closing faster or slower and sometime slower rates or lower fees ARE available if the borrower is willing to wait an extra 30 to 45 days to closed their loan.

In general, the mortgage market is GLUTTED, BACKED UP and CROWDED. Appraisals are taking a LOOOONNG time in many instances, WHICH IS WHY WE TRY TO GET THEM WAIVED, and they can push out closing times—especially on properties that take and extra 5-10 minutes or more to get to….(don’t get me started on appraisers being pampered and picky in today’s market just because some definitely are…because many are not and are doing an amazing job keeping up with the demand). Whenever the borrower is waiting more than 30 days for their loan to fund, lenders will ask for more recent pay stubs, bank statements and fresh copies of any documentation that can expire. It does seem that the funding sources that are offering the LOWEST RATES MOST CONSISTENTLY, are taking longer and most have moved from 30 day locks to 45 day locks and many to 60 day locks. The longer the lock period the more chance of being asked to produce fresh time-sensitive documentation. T

he truth is; SOMETIMES WE CAN CLOSE FASTER AND PROVIDE THE LOWEST RATES AVAILABLE AND SOMETIMES WE CAN’T. When the lower rate takes a bit longer, we always offer faster options and do our best to push slower funding sources when they are the borrower’s choice. So, THE BOTTOM LINE ON REFINANCING IN TODAY’S CRAZY, GLUTTED AND BUSY MORTGAGE MARKET IS THIS: 1) This may be the best time in history to refinance; 2) If your chosen path takes 60 days or even slightly more, you may need to take an IT IS WHAT IT IS point of view and roll with the punches of extra document requests; 3) My advice is NOT TO WAIT TO TAKE ADVANTAGE OF THE LOWEST MORTGAGE RATES EVER; 4) I still see at least a 40-50% chance of one more dip before the current recession hits bottom and a real recovery starts—but, again, I WOULD NOT ADVISE ANYONE TO WAIT AND BET ON BETTER TERMS OR LOWER RATES IN THE FUTURE ; 5) WHERE RATES GO FROM HERE MAY DEPEND HEAVILY ON THE RESULTS OF THE NEXT ELECTION.


Call me at 831-818-7700 or send email to me at jchubb1@gmail.com for real time quotes on rates, fees and closing times on purchase and refinance loans.