Q & A with Dottie Herman

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Q1 - How long on average is it taking to process loans recently?

A - This truly does vary between lenders, markets, and transaction types.  In 2010 the increased refinance business did create some longer time-frames, especially among the large national banks. As we enter 2011 things are getting back to normal. In much of the country you can sign a contractbuy and close on a purchase as fast as 30 days. In some markets such as NY you may need 60 days, and longer for refinances that use a process called Consolidation, Extension and Modification to reduce the closing costs. Inquire with the lender as to what the time-frames currently are.

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Q2 - My wife and I are in the process of purchasing a home. We recently went to contract, so I spoke to my mortgage broker to lock in an interest rate, but have nothing in writing. Is this legitimate?

A - I would follow up with the broker. Law requires a significant amount of disclosure, so yes you should have the rate- lock information, including when it expires in writing.

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Q3 - I recently lost my job and I am unable to afford my second mortgage. What are my options?
   
A - Your best option is to contact your lender and explain the circumstances. They usually have what is called forbearance programs that will allow for some temporary relief and loan restructuring to help you until you are employed again.  Good luck!

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Q4 - My wife and I have been in our house for 20 years. Why did we just receive an unsolicited offer from our bank to refinance?

A - This is an example of pure marketing.  Many Mortgage lenders will determine that you have equity in your home, and therefore market their services to you.  This is very common so do not be surprised if you receive more. You are, of course, under no obligation, and if you are thinking about taking a loan on your home make sure you call a few lenders and shop around a bit.

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If you have a real estate question for Dottie, please send it to; Dottie@RealEstateChannel.com

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