Middletown, RI (PRWEB) August 13, 2012
During the home purchase and loan refinance processes, there are numerous advantages of closing quickly on a mortgage. Not only can speedy action benefit the servicer, but the borrower will likely walk away from the experience more satisfied.
While there are many different factors that can delay a closing, here are a few reasons why a mortgage professional should do their best when trying to complete the process on schedule.
Borrowers won't abandon efforts
Nowadays, it's very easy for a borrower to compare the services offered by different brokers and lenders. If the company they are currently involved with takes too long to address a purchase or refinance request, this could be discouraging, and they could take their business elsewhere.
Not only will this have a direct impact on a company's book of business, word of mouth could deter future customers as well.
Efficiently work through backlogs
Fixed-rate mortgages have been at or below 4 percent for all of 2012, according to Freddie Mac. With mortgage rates hovering near all-time lows, many prospective borrowers and current homeowners are trying to capitalize on this opportunity to get the best deals possible.
As a result, many mortgage professionals have experienced a spike in demand, causing the average amount of time to complete a loan request to grow significantly. Many of these professionals are now dealing with dense backlogs, which could take quite some time to work through. Utilizing solutions from Linear Title & Closing could assist in this endeavor.
Make more money
Professionals who complete a mortgage request in a timely manner will have an opportunity to make more money. The faster and more efficient they are, the better chance they have to conduct more business.
Additionally, so far this year, borrowers are falling behind on their mortgage payments at a lower rate. This means that fewer brokers and lenders are losing business from borrowers defaulting on their loans. Retaining borrowers is the surest way to stay profitable.
Schedule a closing time that works
Closing at a certain time of the month can be very advantageous for a borrower. Specifically, the closer the deal is finalized to the end of the month, the less a borrower will have to pay for upfront fees. If a borrower closes in the middle of the month, they may have to pay all the interest due from the settlement date until the end of the month. This could leave them feeling disgruntled, and if the costs are too much, they could walk away from the transaction altogether.