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Derek O
193 Posts |
 Posted - 11/19/2009 : 12:38:15 PM
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| It seems like a lot of the purchases I end up doing go past the closing date. Sometimes it is the customer who has delayed getting me documents or it is the real slow turn around time of the underwriters. Everytime this happens everyone seems to go bananas and they call me 35 times a day even though I always tell them I will call as soon as I hear something. Sometimes the realtor will call 30 minutes after her last call and ask if I heard anything. I feel like saying "Yeah I heard something an hour ago, I just didn't tell you!", but I don't say really say that. These people must think we are just sitting on our hands over here. Jeez. The deadline with these purchases makes things stressful sometimes. |
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ZoolanderMSM
305 Posts |
Posted - 11/19/2009 : 12:46:45 PM
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I find it helps to get the client docs before I issue pre-approval. If they're really motivated to buy the house, they seem to respond quickly on the front end of the transaction. Then I've got loan docs ready to go and I'm just waiting on the P&S.
Also, I prefer to use lenders that provide speed over price for purchase loans. Depending on your market, you may not have as many options that way. I don't know where you are.
Just some ideas. |
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Captain Mortgage
2784 Posts |
Posted - 11/19/2009 : 1:16:15 PM
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Almost every listing has been going this way for me. Every time I make the buyer pay the per diem. (Note there is a 10 day courtesy period after the contract expires)
My new thing is that for every deadline they need extended I put in the contract that the agent is also charged $50 per diem from their commission. If you have that in your contract you'll see the agent get you any paperwork you need from the buyer. |
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KristinG
17 Posts |
Posted - 11/19/2009 : 1:18:58 PM
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You should be firm (not rude) and let your borrower's know upfront that if they don't get you the needed documents in a timely manner they are holding up their own loan. This really motivates people to be a litte quicker. Put the ball in their court. Let them know they do have some of the control as to how quickly you can get their loan wrapped up for them.
You mention real estate agents calling you 30 minutes after you've talked them and let them know you'll update when you hear something...and you made a joke, "Yeah I heard something an hour ago, I just didn't tell you!" Why don't you really "joke" with them and say that? They'll get the picture that they are being crazy and bugging you. Then you tell them, "All jokes aside, I'll call you the moment the lender gets back to me" etc.
You can't take in all the blame yourself, the stress of it will get to you. Try to put some of these people in their place, that's what I do. It's never rude, but you can't drop everything you're doing to talk to the same real estate agent over and over again only to give them the same answer that you've haven't heard anything yet.
I hope my advice helps you somewhat. |
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mortgagewithme
280 Posts |
Posted - 11/19/2009 : 1:36:03 PM
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| Have you set realistic expectations from the get go? This industry is different now than years past. Things take more time, it is the nature of the beast. I find it helps to inform the customer as well as the agents that a realistic expectation is a 30 day commitment and 60 day closing. Have them write the contract this way so everyone is on the same page. If you close sooner, you will be the hero. With the agents, I tell them I will give them an update every day as the contract closing date approaches. Even if you have nothing to tell them, be the first to contact them and inform them you are doing everything in your power to meet the contract closing date. If anything, they will respect the fact that you have the initiative to make the contact. |
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Derek O
193 Posts |
Posted - 11/19/2009 : 1:37:42 PM
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| How common is it for purchase closings to go past the contracted closing date? |
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lobb
395 Posts |
Posted - 11/19/2009 : 2:41:42 PM
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| Not uncommon now to take about 40-45 days to close loans now. I would tell your agents this upfront when writing the contract. Some could take 60 days .. |
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Pat
1004 Posts |
Posted - 11/19/2009 : 4:19:19 PM
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Just had this conversation yesterday... 21-30 day closing are not normal anymore. We ask for 30 days for commitment and 10 days after that to close. Anything else is really a "rush".
Even with Provident, appraisals sit in QC for nearly a week. Check this time frame:
- buyer signs contract
- applies 2-5 days later
- predisclose, 3 day wait before ordering appraisal (but you're waiting for home inspection anyway)
- order appraisal, wait 5-10 days for return
- submit file for underwriting, 2-3 days.
That's about 21 days if everything goes nearly like clockwork. Generally it's the delay of client in applying or waiting for completion of home inspection that are the real delays. |
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Captain Mortgage
2784 Posts |
Posted - 11/19/2009 : 4:45:49 PM
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quote:
Originally posted by Derek O
How common is it for purchase closings to go past the contracted closing date?
Very common if the Realtor doesn't know how long it takes to close a loan. Most will simply agree to any rediculous time frame that the listing agent comes up with. I've been sending counter offers to people with a 7 day appraisal contingency on conventional deals. |
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LO1003
538 Posts |
Posted - 11/19/2009 : 5:03:31 PM
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| CC your agent on all items needed to process the borrower's loan and if the borrower drags their feet, do what I do: call the agent up and tell them that their commission is in jeapordy. That will get the borrower to provide the necessary docs. Like others have said here, communication is key. |
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skihobo
33 Posts |
Posted - 11/19/2009 : 6:49:24 PM
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| You want to really test your nerves, send your loans to Bank of America, They can easily drag you past 60 day with the most unorganized group of underwriters you will ever deal with. I am telling all of my realtors, due to all of the new regulations and requirements, I need 45 day to close. It seam like I barely make the 45 days! |
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Hokie90
335 Posts |
Posted - 11/19/2009 : 8:56:08 PM
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It can be done...The key is a having a strong team, with a good plan and knowledge of your lenders process...I have some loan officers that get a complete application up front and we close in 20 days...
My most recent file with one broker was a borrower with a 610 mid score (credit pulled 10/28) He paid off a credit card and thru rapid rescore we had a 625 score by the 5th...During that time that the Rapid Rescore was being done the LO was getting docs together...A contract was signed on the 6th..File was submitted to us for processing on the 8th...We registered it with Franklin American and submitted a skinny file so that MDIA clock would start clicking...Because of the work done up front the conditions were minimal...Final conditions were sent this morning..We should have CTC by Monday, closing on Tuesday...
Treat your files like an assembly line with each member of your team (processor and loan officer) working the line...Set timelines and communicate with all parties involved in the transaction (including realtor)
And for those loan officers processing a file by themselves, find a good processor...Don't lose a realtor/builder relationship because you dont want to spend the $400 - $500 per deal...
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MarkIFC
1279 Posts |
Posted - 11/20/2009 : 06:51:49 AM
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You must be using the wrong lenders???
I just closed two FHA 203K streamlines in 22 & 27 days. |
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conk0029
110 Posts |
Posted - 11/20/2009 : 09:55:53 AM
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I had two realtors, buyer and seller, call me a stupid amateur last month. The borrower dragged there feet on two docs. It was my entire fault of course. I closed it in 20 days!! It happens. The good realtors work with you, the dumb ones will just complain.
I always send out a stern email to all parties involved after the PA is singed and state if all the docs are not received in a timely fashion, the closing might be delayed. It usually lights a fire under all parties. I also make the borrower give me everything on my check list up front, before they sign the PA. It helps to speed up the process, if you have the majority of docs up-front.
The theme on all of these threads is GOOD COMMUINCATION will make the process easier. Like cspatmon says, make it known upfront in the transaction.
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RGK2394
2247 Posts |
Posted - 11/20/2009 : 11:29:22 AM
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quote:
Originally posted by skihobo
You want to really test your nerves, send your loans to Bank of America, They can easily drag you past 60 day with the most unorganized group of underwriters you will ever deal with. I am telling all of my realtors, due to all of the new regulations and requirements, I need 45 day to close. It seam like I barely make the 45 days!
Wow- don't know where your files are being underwritten, but I just closed a friend's loan with BofA and start to finish was <3 weeks. HVCC appraisal done on Friday, back to us TH, value surprisingly higher than anticipated, flew thru UW stips w/out any issues, and was an all around pleasant experience. Pushed up closing 3 days from original contract date. |
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eh6794
1599 Posts |
Posted - 11/20/2009 : 11:41:01 AM
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quote:
Originally posted by lobb
Not uncommon now to take about 40-45 days to close loans now. I would tell your agents this upfront when writing the contract. Some could take 60 days ..
Tell the agent it could go past 30 days so he can make sure to steer them to an LO that can do it in 20... |
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eh6794
1599 Posts |
Posted - 11/20/2009 : 11:48:20 AM
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| FHA does take longer. I get all the docs, full app, DU'd file then submit it to the lender before you get the fully executed contract back. With the lenders approval, I submit the file if the asset manager is dragging their feet on getting the contract back... This way it gets inline for underwriting. |
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Coffee Is 4 Clos
1750 Posts |
Posted - 11/20/2009 : 12:27:22 PM
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| I lock in all deals at 60 day locks nowadays... its not worth the headache anymore. If its not the turn time or the appraisal issues, its the seller's or someones schedule conflicts with the closing. |
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eh6794
1599 Posts |
Posted - 11/20/2009 : 1:04:26 PM
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quote:
Originally posted by Coffee Is 4 Closers
I lock in all deals at 60 day locks nowadays... its not worth the headache anymore. If its not the turn time or the appraisal issues, its the seller's or someones schedule conflicts with the closing.
why would you lock at a 60 day lock???? that makes zero sense... why would you take less rebate, or charge your borrower more for a slow turn time...
Derek, dont do a 60 day lock, thats a bad idea... |
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kellamtom
1610 Posts |
Posted - 11/20/2009 : 6:22:32 PM
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if you can't close a loan in 30-45 days then you either need a new preferred lender with better turntimes or you need a new processor.
A 60 day lock is crazy, float down to a 15 is the only way to ride, rate's are not going up until 2nd quarter of 2010 |
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smoothlid
505 Posts |
Posted - 11/20/2009 : 6:42:06 PM
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Wow, some of you are seriously in need of a new game plan / process, & maybe go-to lender for purchases.
At my office, we specialize in purchase loans- making up 80+ % of our pipeline. We work with many local RE agents from pre-approvals to process to closing their clients loans.
I find it helps to set the right expectation up front, but i can tell you that Freedom Mortgage's branch division is a big reason why we can do what we do!
Timeline:
PA signed, we look for docs from client within 1-2 days max.
We ask agents to give us @ 2 weeks for a commitment on the contract to allow for what-if's but we get our commitments within 1-3 days of submission of our application.
Once commitment & disclosures are done, we ask closing agents to order & deliver title asap. We order the appraisals as soon as the home inspection has been completed & no issues present.
We gather add'l conditions from borrowers, etc, & then re-submit 1-2 times til cleared to close. We get docs to the closing agent 1-2 days before closing, & sometimes much earlier. I have no problem meeting closing dates, in fact in 3 years, I have only missed 2, & one was the client's fault! the other, was a 1 day delay on a rush file.
I love working directly with our team at Freedom. Never want to broker a loan again. Don't know how you guys can handle the anxiety of wondering when the lender is gonna work on your file.
Looking for a change? contact www.fmbranch.com & follow instructions. (I am not a recruiter) 3 yrs now with them & growing my business!!! |
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