Have you ever gone to purchase something, only to be told that it would take two to three weeks to get it? Most likely you were disappointed and took your business elsewhere. Speed of delivery is crucial to being successful in our era.
Today’s successful online retailer companies, like Amazon and Walmart, offer ways to get your items within days for no extra cost. Shouldn’t the loan process be the same? Yes, and your customers deserve it.
If you are a client looking for this type of service, seek out a company that offers fast turn-around times so that you get what you want now. Make sure they can underwrite your loan up front, lock in your rate, and request all of your documents right away. Loans can be closed in as little as seven days if your loan officer has the right resources to close your loan efficiently. Most likely, you will not find service like this with larger banks overwhelmed with business.
If you are a loan officer, there are four areas you should focus on that will make you into the lean, mean, loan machine:
- Work with investors that share your mindset. Can they approve the loan within 24 hours? How long will it take to clear conditions? How long for documents and funding?
- Be up front. Get all of the needed documents from your client at the same time they are signing disclosures, and tackle any loan problems right away.
- Lock your loan so there are no changes.
Use this as your guide for questions to raise and items to account for: IMATCH-D
I — Income (W-2’s, pay stubs, tax returns, leases)
M — Mortgage History (24-month history, VOR needed)
A — Appraisal (HVCC, conditions of your property. Can it be ordered? How strong are your comps?)
T — Title (who is on the title, change of vesting, are taxes due)
C — Cash Reserves (are assets needed? If not, leave them off the1003)
H — Hazard Insurance (change loss payee, impounds, enough coverage. Is it due with 6 months?)
D — Disclosures (sign right away, 4506t, ID’s, SS verifications)
By no means is this list comprehensive. But, if you work together, as the client or the loan officer, you can close in seven days!