With mortgage rates hitting record low, refinancing volume hits record high lately. As a result, it took longer for lender to give borrower response after application was submitted. The turnaround time went from around 10 days to almost 25 days for many lenders. And this is just an initial decision from the lender. The whole cycle from sending the application to loan close could stretch to 45 to 60 days.
Therefore, it’s important to know how many days your rate is locked for. If your rate is locked for 30 days and it takes lender 45 days to close your loan, you may end up paying fees to extend your rate lock time.
Here a few things you, as a borrower, could control to speed up your refinance process:
- Send all documents lender asked for altogether
- When appraiser calls you to schedule an onsite inspection of your house value, schedule it as early as possible.
- You may choose to lock rate after your loan gets initial approval from the lender if you are not concerned by the daily market fluctuation of the rate. Remember, the shorter the lock period, the better the rate could be for same day comparison.
If you would like to discuss further on your refinance or getting a mortgage for buying a house, please feel free to email me or call me
