In this blog, we will discuss and cover how The team at Gustan Cho Associates has a mortgage program in closing home loan in 21 days or less. Both purchase and refinance transactions can be closed in 21 days or less at Gustan Cho Associates. There are multiple steps in the mortgage process which include from pre-approval to closing home loan in 21 days at Gustan Cho Associates.
How Does Closing Home Loan in 21 Days or Less Work?
Here is how the mortgage process works at Gustan Cho Associates:
- Borrower consults with a loan officer and applies for the loan
- The loan officer will complete a four-page mortgage loan application called 1003
- The loan officer will run credit which is a tri-merger credit report and use the middle credit score
- If the borrower qualifies, the loan officer will ask for Mortgage Documents Required to proceed with the loan process
- Once the loan officer reviews all of the mortgage docs and makes sure that it matches with your mortgage application, your loan officer will run your file through Automated Underwriting System
Automated Underwriting System
Gustan Cho Associates has over 160 wholesale lending partners. Our business platform for the past ten years was dealing with wholesale lenders with zero lender overlays on government and conventional loans. If borrowers get an approve/eligible per Automated Underwriting System, they are set to go with a lender with no overlays. However, if the lender has overlays, the loan officer needs to know whether or does not meet their overlay requirements. Once the loan officer prepares the file, the loan officer will submit it to processing and a mortgage processor will take over the file and scrub the file. The mortgage processor will make sure all docs are complete and there are no missing pages. Once the mortgage processor completes the file, the file is submitted to underwriting and a mortgage underwriter is assigned to the borrower.
How Mortgage Underwriters Process Documents
Once the underwriter reviews all docs and feels confident that the borrower meets all the conditions, the underwriter will issue a conditional loan approval which is now close to the closing home loan stage. Conditional loan approval is by no means a formal approval. Conditions need to be met and the processor will contact the borrower and gather all the conditions with the loan officer.
Getting a Conditional Loan Approval
Every condition will need to be gathered before the mortgage processor will submit it to the underwriter for a clear to close. Once the mortgage processor feels all conditions are met, the processor will submit the file for a clear to close. In most cases, the underwriter signs off on the loan and issues a clear to close. In the event, if the underwriter finds something missing or incomplete, the underwriter will issue an updated conditional loan approval. The processor and loan officer gets to work and gets the remaining conditions that the underwriter asked for.
Clearing Conditions For Closing Home Loan
Files get submitted to a clear to close and the underwriter finally issues a CTC. The closing home loan is held at a title company. Docs are sent to the title company along with the wire once the docs are approved by the lender. Refinancing mortgages can be held at the homeowner’s home. A closer will make arrangements with the homeowner and travel to their home and conduct the closing there. TRID REGULATIONS are now in effect. There is a three-day waiting period after the CTC in order for the closing can take place. On refinancing, after closing, there is an additional three-day waiting period to disburse the funds.
All Our Pre-Approvals Are Full Credit Approvals Signed Off By Our Underwriters
Borrowers who need a pre-approval, click APPLY NOW FOR MORTGAGE PRE-APPROVAL.
Gustan Cho Associates offers the following:
- 21 day closings on most loans.
- Past 21 days happen if the borrower is missing docs
- No overlays on FHA loans and the minimum score required is 580 FICO
- Under 580 FICO Credit Scores require 10% down payment
- No overlays on VA loans and the minimum credit score required is 580 FICO
- No overlays on USDA loans and 580 is the credit score required
- No overlays on conventional loans.
This includes primary, second homes, and investment homes.
How To Simplify The Mortgage Process With Proper Preparation Before Submission
Proper preparation before submitting to a mortgage underwriter is key to having a smooth mortgage process. The loan officer needs to work closely with the mortgage processor. The mortgage processor must ensure all required documents are complete with no missing pages before submitting them to underwriting.
The key is to get conditional loan approval with as few conditions as possible. An experienced veteran mortgage processor will not submit a borrower’s file to underwriting if the package is incomplete.
Most processors would kick the file back to the loan officer if the loan officer did not turn in a neat, complete file with all the proper documentation. This article will discuss simplifying the mortgage process and closing on time.
How To Simplify The Mortgage Process and Avoid Stress
The key to How To Simplify The Mortgage Process is to educate yourself on the overall steps involved in the home loan process, from taking the loan application to the clear to close. The home mortgage process cannot be done overnight. It normally takes an average of 30 days to close on a mortgage.
Everyone’s goal is to expedite the home mortgage process and close the home loan as soon as possible. One of the biggest mistakes to avoid is not taking the time that all documents required to submit to the lender are not complete.
Taking time and ensuring you do things right the first go-around rather than things half-assed is best. All documents with missing pages or that are not legible will get kicked back, and the outcome is the mortgage process needs to restart again. There are ways on how to simplify the mortgage process to avoid stress and close on time.
How To Simplify The Mortgage Process By Documenting Any Paperwork During The Home Buying Process
Borrowers need to realize that cash is non-existent in the mortgage world. All funds need to be documented before and during the mortgage process. Make sure whatever you spend or deposit in your bank account is documented. This holds true of the earnest money check. Dale Elenteny, a senior loan officer at Gustan Cho Associates, explains on how to simplify the mortgage process to close on time:
The earnest money check should be paid with a bank check to get sourced. Make sure you do not tap into your cash to close. Do not bounce any bank checks. Many lenders will automatically deny a mortgage loan if there are any bank overdrafts in the past 12 months. Do not apply for any credit.
Credit inquiries need to be explained, which may cause delays in the mortgage process. Do not purchase any furniture or other high-ticket merchandise. Do not buy a new car or trade-in your car. Do not co-sign for anyone until you have closed on your home mortgage. Do not quit your job or change jobs during the mortgage process. Do not give notice that you will be retiring to your employer.
Closing Home Loan On NON-QM & Bank Statement Loans
NON-QM loans where borrowers can qualify for a mortgage one day out of foreclosure, deed in lieu of foreclosure, short sale, and bankruptcy. No overlays on qualifying for an FHA loan after Chapter 13 Bankruptcy discharged date. Borrowers can qualify for an FHA loan while in a Chapter 13 Bankruptcy one year after the filing date and with the approval of the Chapter 13 Bankruptcy Trustee. All Chapter 13 Bankruptcy files where the discharge date has not been seasoned for at least two years are manual underwriting. All manual underwriting requires verification of rent. Most pre-approvals at Gustan Cho Associates closes in 21 days
Over 75% of Our Borrowers Are Folks Who Could Not Qualify at Other Mortgage Companies
Over 75% of borrowers of Gustan Cho Associates are folks who either got a last-minute mortgage loan denial or are going through a stressful mortgage process with a lender. There is no reason why a borrower should not be closing home loan once he or she is pre-approved. All closings should close on time and there are no excuses for closing delays. Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays. Call us at 800-900-8569 or text us for a faster response. Borrowers can also email us at gcho@gustancho.com.
