Why is it taking my loan so freaking long to close?

By
Real Estate Services with Auto & Home & Life Insurance throughout North Carolina

Before I attempt to answer that question, interested readers should know something.  I am a loan officer by trade.  That's what they call us.  I don't particularly like that title, but what's in a name?

I don't get paid an hourly wage or a salary.  If I don't close loans, I don't make a dime.  If I don't make a dime, that means I can't eat, drink, or even sleep if I can't afford to make my mortgage payments.  That's not a sales pitch, that's a reality.  It's in my best interests to close every loan that comes under my wing.  While there are ethics involved to ensure you are doing your client right, if I can offer and do a loan for you that puts you in a better financial situation, I want to close your loan as fast as possible.  It's not only in your best interest, but mine as well.

So why is it taking so freaking long?  Good question.  Here's a few observations on my behalf:

  • More volume with less 'able and willing' people to deal with it.  Let's be honest here (I love that line:), the mortgage industry isn't exactly the most attractive line of work to get into now.  To boot, a whole lot have left it.  I'm still here because I'm stubborn and good at what I do.  Plus, I believe you have to go through hell to get to heaven.  Call me selfish, but I think my time here will work out very well in the end.  Even if it doesn't, Economics 101 has us dishing out the phrase, "Too much demand and little in the way of Supply." 
  • Front-end incompetence.  If you are searching for a pre-approval from a lender, get the appropriate documents in order before you ever even fill out an application.  If they don't ask you for such documents, they may have more ties than me.  Either that, or the final result won't be what they promised.  Do yourself a favor, get your W-2's, pay-stubs, bank statements, etc, in order.  If your loan officer doesn't ask for it immediately, ask them why they don't need them.  That will put a spark up their ass.
  • Changes.  This is a tough one.  It's hard to tell someone who is a completely competent borrower, why the area they are in or the house they chose isn't on the "I love to lend in" realm.  The only real advice I have on this one is if you are dealing with someone you trust, they will get you through the current bullshit that is going on.
  • They just don't like you.  Well, we live in a society where that is not acceptable.  Folks actually look at your loan, but you aren't nearly as personal to them as you would like.  I work for a relatively small company and see that.  I can only imagine what working for a large one would entail.  Work with an individual that you trust, that you can reach out to and at least communicate with.  There is a common thing with that, you both share the same self-interests.  He/She gets paid only if your loan closes.  You only get what you desired after paying for an appraisal, maybe an inspection or two, and actually being able to be comfortable within the confines of a few walls that aren't labeled as "Prison".
  • The Government.  Now, I really don't want to wax political or get involved in any sort of debate about policy, parties, or general ideology.  But I already have since mentioning this.  We don't need the Government in this Private Sector.  We didn't need them back then; we don't need them now.  Those of us (I include myself because frankly, this is my business) who know the Real Estate Industry also know how it is to be corrected.  Let's demonstrate how we will make sure such an extreme reaction to market won't happen again.  It's a cycle, learn to ride.

We'll reach those Golden Years, but it takes work and patience.  Why is it taking so long for your loan to close?  Because this ain't a pay-day loan, this is a roof over your head.  Maybe this is the opposite extreme of giving everyone with a pulse a mortgage, yet you know what they I say about extremes... "They are to be avoided."

 

 

 

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Re-Bloggged 4 times:

Re-Blogged By Re-Blogged At
  1. Robert Kenmore 06/14/2009 11:16 PM
  2. Wayne Johnson 06/15/2009 07:02 AM
  3. Gwenn Tanvas 06/15/2009 08:33 AM
  4. Sandy McAlpine 06/15/2009 09:08 AM
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Topic:
ActiveRain Community
Location:
Pennsylvania
Groups:
Bloggers Choice Selections
New Jersey & Pennsylvania -- Realtors/Loan Officers/Title Clerks/Real Estate Lawyers
The Lehigh Valley Network
All About Mortgages/Mortgage Networking
Mortgages
Tags:
patience is a virtue
i hate it as well
loans not closing on time

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Anonymous
Home Buyer, Schuylkill Co., PA

From someone trying to purchase a home, the frustrating part is not being asked for additional items. It is not hearing anything at all. We went with a LO that is in the same office as the sellers agent and our agent, thinking it would make everything easier.  Boy, were we wrong.

The LO has never returned a single phone call or e-mail. We were supposed to close on 6/16 that was postponed to 6/30 and now to 7/10, this would be fine if we had a clue as to what the hold up is.  The lack of communication from the LO has been very frustrating. Finally, went to the office and sat and waited for the LO a couple of days ago and he stated that his has a loan commitment letter that we are still waiting on the appraiser to do a final walk through. Our fear is that the appraiser did the walk through and e-mailed the results and our LO doesn't know how to check his e-mail.  He's a nice guy and if he would keep us updated we may not be so frustrated with the process.

I still don't understand why the process is taking so freakin long. What comes next? I wouldn't want to be a Realtor or a Loan Officer and deal with irritated people, so we are trying to display patience, it's just not easy.

 

 

July 02, 2009 08:33 PM
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500,546
Jason Sardi
Your Agent for Life
Auto & Home & Life Insurance throughout North Carolina

Karl - Sorry; I make somewhat interesting references in my musical selection.  I'll leave it at that:)

Home Buyer - You just nailed the easiest problem to fix.  I don't understand that crap either.  Lack of communication is absolutely ridiculous.  Guess what, I see it all the time and still don't understand why.  I don't care if you've been in this business thirty years, know all the signs of where interest rates may fall within the next few days, or have an avid love affair with the Underwriter... the bottom line is that it seems the folks you are working with are dropping the ball in the simplest version of doing business... communication.  Kudos to you for practicing patience.  I'm in the industry and if it were me, I'd be up their ass so far that Popular Toilet Paper Brands may issue me a lawsuit... or a job opportunity.  This may mean nothing, but give me a call if you want.  You're already on board with them, but maybe I can make the experience a tad bit more appealing.  Every once in awhile you consult someone because you like them, are related to them, understand them, or just feel its intrinsic enough to warrant action.

Here's my cell:  610-653-0317...

No fee, that's free.  Just remember me when your handing out names...

 

July 02, 2009 09:43 PM
Rainer
26,516
Michael Rohde
Sunstreet Mortgage LLC. Licensed Mortgage Professional

Well Said, I know it's tough out there and truth is no one wants to say no. We want to make every loan we have an opportunity to take in. Unfortunately there are too many ways to crap out right now. Good Blog.

July 30, 2009 05:18 PM
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500,546
Jason Sardi
Your Agent for Life
Auto & Home & Life Insurance throughout North Carolina

Grazie, Michael.

July 30, 2009 09:20 PM
Anonymous
sara

I'm sick and tired of this whole "closing" crap!!  I made an offer mid March...it was accepted 36 hours later....went for my loan, got the appraisal, inspection....and have a credit rating in the 800's!!!  It is now JUNE and all i keep getting is the run-around.  Still NOOOOOOOOOOOO closing date, and all i keep hearing is, "we are waiting for the underwriter to get back to us"!!!  WHAT?????  I call every day and talk to my mortgage lender and loan officer....and i hear "Im trying"!  I would like all my money back, my earnest money and all the money I put out for the inspection and appraisal.  This sucks!  It sure has made the home buying process horrible for me.  AND THIS IS MY FIRST HOME!!!  I give up!

June 01, 2011 02:09 PM
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Jason Sardi

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