President/Broker
Equal Housing Lender
- Type of Loan: If the loan is a refinance or purchase of an existing structure on land, the normal processing time is 30 days. If the loan involves a construction project such as a new manufactured home on land where an "all-in-one" construction-to-permanent loan is obtained, the normal closing time is 30 to 45 days. These loans require additional paperwork to be assembled regarding the work to be done on the property and require additional Underwriting time on the part of the lender. However, continued computerization of the process will shorten this time.
- Type of Property: If the property is an existing site-built home or manufactured home permanently affixed to land, the normal time is 30 days. If there is work to be done to the property per a pest control company, home inspection company or the independent fee appraiser, the length of time to complete the work and for a re-inspection to be performed will add to the length of the escrow. As mentioned above, if the property is a land/home package with a manufactured home being placed on the land and all purchased at one time, the minimum time is 30 to 45 days.
- The Borrowers' Present Home Location: If the borrowers must return to their present home outside of the area it is likely that the required documents such as tax returns, pay stubs, etc. are not available until the borrowers return home and mail required documents to us. All legal papers needing signatures may have to be mailed to be signed and notarized and returned. This will add time to length of escrow.
- The Source of the Borrowers' down payment: If the down payment is coming from the sale of an existing property, there may be a delay in closing until those funds are available. Also, if the borrower needs to pull funds from another form of investment, such as, an IRA or other type of plan, there may be a delay waiting for those funds to be received.
- The Source of the Borrowers' Monthly Income: If the loan is approved based on monthly income being received by the borrower, this money must be verified. It must have been received for at least one year and there should be at least two years of employment in the same line of work. If a borrower is retired, there must be documentation regarding the funds to be paid as part of a retirement or pension plan. Often, the borrower may not be able to locate an "awards letter" or proof of the benefit terms. We then must contact the plan administrator and request verification of the terms of the retirement plan. (There must be at least three years remaining on any retirement, disability income, note receivable, etc.)
- Title Company Problems: Often there may be items showing in the preliminary title report in regards to easements or liens which may need to be clarified before they can be removed from the title policy as exceptions to the title insurance. These may involve the seller or other parties not related to the borrower, and which may cause delays.
How long will it take to close the loan?
The length of time is takes to begin a loan application package and to close escrow depends upon the many variables such as:
Why do you need so much documentation from me?
In order to close the file in a timely manner, the file must contain all the paperwork which we know and anticipate to be required by an Underwriter or a Closer. By providing supporting documentation for all items declared on the loan application, we are saving considerable time with the elimination of additional information being requested after the loan is submitted for approval. In addition, the process continues to be shortened with the increased use of technology, such as computerized underwriting. This will decrease the amount of required paperwork.
The best rates and terms on a loan are given to certain types of loans which meet standard underwriting criteria throughout the United States. Three months of bank statements, two years of tax returns, W2's, and other paperwork, which seems to invade one's privacy is standard paperwork. If this information cannot be documented, an alternate loan my be offered at less desired rates and terms. The smaller the cash down payment, the more stringent the underwriting guidelines and the more documentation required.
At what time are rates and loan fees guaranteed?
Once a loan is "locked in " the rate and terms are guaranteed for a certain time period. Should the market change prior to the lock in date, the interest rate and/or points may be less or more that originally anticipated. Most loans can be locked in up to 60 days at any time without cost. The all-in-one construction to permanent loan cannot be locked in until all underwriting conditions have been met and the loan closing documents are being drawn up to send to the title company for your signature, which would normally be about 30 days from the time the application was first taken.
Your loan officer is responsible for explaining the process to you at the time of your loan application. Should you still have questions, please call the loan officer or your loan processor to clarify any issues you may have. If you are calling outside the Lakeside, Oregon area, please feel free to call on our Toll Free Number at 1-800-487-3916.
We appreciate your business and we wish to make the loan application process as smooth as possible.
Sincerely,
Cheryl Hamilton,
President/Broker
Phone: 541 759-2191
Toll Free: 1 800 487-3916
Fax: 541 759-2197 E-Mail
Hamilton Mortgage Corp. - 270 South Eighth Street - PO Box 369 - Lakeside, OR 97449
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