Ensuring a Smooth Closing Process

mortgage

There are several stages to buying a home, and one of the last and most important ones is closing. Most home purchases come with a close of escrow date of between 18 and 30 days written into the purchase contract, and this is a period where it’s important to be diligent and responsive to keep the transaction moving.

At Altius Mortgage and our partners at Mortgage Ogden, we can help with all these areas. Our mortgage brokers have years of experience walking clients through this process and helping them lock in great mortgage rates. Here are three tips we commonly offer for a smooth, comfortable closing process.

Quick Responses

The closing period will be one where you may receive several requests. These could be from the third-party underwriter, who may be asking for additional documentation or signatures for some part of your financial information. They could also be from the seller or even your mortgage broker.

Replaying too slowly to these requests can cause delays in the process – we all know how slow the world of finance can work at times. In some cases, this can cause the deal to fall out of escrow and create major headaches.

Locking in Your Rate

Mortgage rates are always in flux on the market, meaning that if you’ve found a great one, you want to get it locked in as soon as you can. Rate locks generally run 30 days or longer in some cases – once again, after you’ve done this, prompt responses and activity are important to ensure you don’t reach the expiry date of this rate lock. If this happens, you’ll have to re-qualify for a new rate, which can not only cause further delays, but might be a worse rate than you had before.

Digital Signatures

Today, it’s rare to see printing or faxing done much. Instead, transactions are handled digitally, with the use of software to keep things secure while still speedy. You should be using electronic signature software from the start here – if you don’t, work with your lender in advance to factor in the delays that come with paper mail or faxing.

For more on a good closing process, or to learn about any of our other mortgage loan solutions, speak to the pros at Altius Mortgage today.

Details on Changing Credit Reporting

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As a top mortgage company in Utah, we at Altius Mortgage and our partners at Mortgage Ogden are always abreast of big changes in or around the industry that might impact your ability to secure a mortgage loan. One such important change that’s taken place recently? An update to the way the three major credit bureaus (Experian, Equifax and TransUnion) track certain parts of credit reporting.

For those speaking with a mortgage lender like ours about getting a great home loan, credit score is a huge factor. It often determines whether you can qualify for certain mortgage types, and is a big determinant of the kinds of mortgage rates you can get as well. Let’s look at this new change, and whether it will affect your score.

Why and When?

After a Consumer Finance Protective Bureau study that revealed its necessity, the three major credit bureaus have enacted the following change: Tax liens on consumer credit reports will no longer be included, and will be removed from previous scoring.

The study from the CFPB revealed that many incorrect reporting complaints received over the last few years were in this area. This change was enacted on April 16, 2018 – some of the changes were actually made last summer, but this was the date by which all reports were properly adjusted. Data will be held to a generally higher standard, with refreshing taking place every 90 days.

Will Your Score Be Affected?

As we noted above, these changes have been taking place since the summer of 2017 – it’s possible you already saw an increase to your score since then if you have any tax liens in your credit history. If not, you should have seen it by mid-April. LexisNexis Risk Solutions estimates that only about 11 percent of all customers will see a change in their score based on these changes, but those who do see changes will see increases of up to 30 points.

For more on new changes to credit score and how they affect you, or to learn about any of our mortgage solutions, speak to the pros at Altius Mortgage today.