Anyone who has been actively shopping for a new home can attest to how busy the housing market has become. It’s next to impossible to purchase a property without getting into a bidding war. The market is in a frenzy, and it seems as though everyone is trying to get a piece of the action. This is exactly what I predicted roughly a year ago in my blog on The Impact of COVID-19 On The Housing Market. Home shoppers are finding that the only way to have a chance of having their offer accepted is by putting in a condition free offer.

 

Long Turnaround Times For Mortgage Approvals
With the real estate market as hot as it is, the mortgage industry has become overwhelmed. Particularly with major banks. In fact, the turnaround time to get your mortgage approved with some of the major banks can be as long as two weeks, or even longer in some cases. It’s not just banks, as there are other lenders who are in the same boat. This can be extremely frustrating and can put a damper on an otherwise exciting time, especially for first time homebuyers.

The mortgage process is not always fun, although we try to make things as easy, and as stress free for our clients as possible. We deal with major banks regularly, and their long lead times can hinder our ability to deliver on our high-level service commitment to our clients. While we have no control over a lender’s lead times, we do have control over what we tell our clients, and the level of service we deliver outside of the lender. We’ll always try to give our clients an idea of what they can expect from the lender we are dealing with, including an estimate of turnaround time. We’ll keep you posted every step of the way.  As always, we’re committed to giving our clients a better mortgage experience than they will get anywhere else, while coming in with lower rates at the same time.

Mortgage approvals are not the only part of the process that some lenders are dragging out. They can be equally slow on document review, which is generally not done until after the lender issues the commitment (approval). This can sometimes lead right up until your closing date, which can be enough to create anxiety for even the most confident and calm mortgage borrowers. My team and I are of course here for you, and we’ll be figuratively by your side every step of the way. If there are any potential concerns, or added risks created by the longer lead times, then we’ll advise you right away.

 

How To Get Around Long Turnaround Times
The good news is that you do not have to settle for long turnaround times. While we deal with some major banks regularly, we deal with many other solid lenders as well. These lenders have amazing rates, and will often issue your mortgage approval within 24 hours. Documents are often reviewed in a timely manner, and well in advance of your closing date, leaving you plenty of cushion. Not only are these lenders lightning fast when compared to the banks, but their rates and terms and conditions are often better as well.

 

Why The Lowest Rate Does Not Always Equal The Best Choice
The experience level you have in dealing with your mortgage can be a big part of the home buying process. Having your offer accepted on a property is an exciting time, especially in this market!

Getting the lowest mortgage rate is important, and can further fuel your excitement, but amazing rates should still be available without having to put up with extra anxiety along the way. There are some who want the lowest rate regardless of experience, and will put up with anything to get it. If the lowest rate happens to be with a lender that is going to drag out the process, then we’ll let you know what you can expect up front, and will also present you with alternative options.

The big banks can be great options in some situations, but there are many times when non-bank lenders will not only have lower rates, but better terms and conditions as well. The lowest rate does not always equal the best mortgage. The terms and conditions can be more important to the rate, as this is where the true cost of the mortgage can be found… if you know what you’re looking for.  All that much more reason why the person handling your mortgage is one of the most important considerations. You can have a great experience dealing with your mortgage, or it can be a nightmare. If the person handling your mortgage for you is slow to respond, or worse, not responsive at all, then this can really add to your anxiety level as closing rapidly approaches.

Regardless of which lender you choose, our goal will always be to give you the best mortgage experience possible, while saving you as much money as we can at the same time.

 

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