While many large financial institutions are facing backlogs of mortgage applications as more homeowners take advantage of low interest rates and the government-sponsored Home Affordable Refinance Program (HARP), borrowers looking to accelerate the refinancing process are finding some relief from brokerages and community banks that are not servicing HARP loans.
Making sense of the story
- HARP borrowers typically refinance with the banks that originally serviced their loans, because those banks already have their information and, according to the Mortgage Bankers Association, “There’s potential for it to be a less painful process.”
- Still, tighter lending standards precipitated by the mortgage crisis have made for an arduous application process.
- Mortgage brokers are reporting an increase in business from those looking to streamline the process. According to one broker, a benefit of working with a mortgage broker is that they have direct contact with the banks and can keep track of the application as it goes through many hands at the bank.
- Borrowers also might want to consider refinancing with a community bank, especially those that do not service HARP-eligible borrowers and are able to respond quicker to non-HARP refinance requests.
- Probably the most important thing to do, have all your paperwork together. This includes two years tax returns; last two months statements from all your accounts including your bank, investments, and any other account you have funds or receive income, and last two payroll stubs if salaried or a P & L statement in self employed. In today’s lending environment, banks want everything and sometimes it seems, more.
Remember, the better prepared you are, the quicker and less painful this process can be.
Thank you for reading this post. If I can ever be of help in finding you the perfect property here in the Napa Valley, please email me at Curtis@NapaValleyAddress.com