BREAKING NEWS: Refinancing During Coronavirus Pandemic Mortgage Crisis
Hurdles with Refinancing During Coronavirus Pandemic Mortgage Crisis:
- With all the global news surrounding the COVID-19 coronavirus outbreak, there is a strong surge of refinance mortgage transactions
- In this blog, we will give a quick update on the coronavirus affecting mortgages and how to complete a refinance transaction during these difficult times
In this breaking news article, we will discuss and cover Refinancing During Coronavirus Pandemic Mortgage Crisis.
Update For Homeowners Refinancing During Coronavirus Pandemic Mortgage Crisis
There are many hurdles and challenges when Refinancing During Coronavirus Pandemic Mortgage Crisis:
- A record of 16 million people has filed for unemployment in the past few weeks!
- PPE supplies seem to be stocked at a level to keep our healthcare professionals safe during these times of chaos
- The U.S. accounts for ⅓ of the world’s death toll
- Many Christians are locked down for Good Friday and Easter weekend, will have to celebrate
- Refinancing your mortgage loan during the COVID 19 coronavirus outbreak
- With interest rates surging and dropping at a pace we have not seen in many years, there has been a mini refinance boom in the mortgage industry
- This is good and bad news
- This is good because thousands of Americans are saving money on their mortgage payments and some are even paying off debt with a cash-out refinance
- The downside to the refinance boom is mortgage companies are at capacity for origination
When mortgage companies are swamped, investors charge higher interest rates to steady the number of mortgage loans in their pipeline.
Discount Points Charged By Lenders When Refinancing During Coronavirus Pandemic
Many of our investors are charging DISCOUNT POINTS for most borrowers, even those with strong credit scores:
- This market is unpredictable during this COVID-19 outbreak
- With everything going on, is it possible to close a refinance?
- Closing a refinance is still possible during the COVID-19 coronavirus outbreak
- There may be a few small hurdles to jump over during the process
- The main hurdle will be the appraisal process
- Depending on your refinance transaction, more than likely, you will need a full appraisal to close the transaction
- In these uncertain times, many appraisers are not working
This may cause your appraisal fees to be higher than normal and the time for an appraisal to be completed to be longer than normal.
Turn times When Refinancing During Coronavirus Pandemic Mortgage Crisis
Underwriting turn times. Due to increased volume in the mortgage market, and mortgage company
employees working remotely, this is creating longer than normal turn times for the mortgage process.
- In times like this, we recommend locking your interest rate for at least 45 days for a refinance transaction
- Or you may want to float your interest rate lock for the first few weeks of the mortgage process
- Before the COVID-19 coronavirus outbreak, refinances were taking between 25 and 30 days
- Due to the fact is above, a refinance transaction is now taking closer to 40 to 45 days
- Patience is required during these times
- Underwriters are swamped with loans and are taking longer than normal for approvals
- Refinance closings procedures during COVID-19 coronavirus
- The real estate sector is still considered essential business making many title companies are now using remote and drive up closing procedures
- With a refinance, in most states, you are able to have a mobile notary meet you to sign closing documents
- During the coronavirus outbreak, this is still possible and in practice
- Some title companies will require you to come to their location and sign the documents in your vehicle
- This is called a drive up signing, a new practice
We hope this is temporary as many clients are excited when they close on a mortgage loan. The days of handshakes and hugs will return soon enough.
Getting Started With The Refinance Mortgage Process
We continue to monitor the COVID-19 coronavirus outbreak.
- We all hope to be back to work sooner than later to increase our customer service abilities and turn times
- With a record of Americans off work, not everybody is eligible to enter into a mortgage
- For those individuals who have been laid off, they will need to return to work before qualifying for a mortgage
We all monitor the news closely and hope to have our economy opened as fast as possible.
Documents Required To Start The Mortgage Process
In order to start the refinance process, you will want to gather the following information:
- Driver’s License
- Last 30 Days of Pay Stubs
- Last Two Years Tax Returns – not always required
- Last Two Years W2 or 1099s
- Mortgage Statement
- Home Owners Insurance Policy
Once you have this information gathered, please call Mike Gracz on 630-659-7644. You will then have a one-on-one refinance consultation. It is important that we understand the goals of the borrower to best serve you in the short term and long run. There are times when a refinance transaction does not make financial sense for you. We want to make sure this loan will benefit you. Mike will pair you with a licensed loan officer in your state to get the process started! Remember, 75% of our clients have been turned down by other lenders due to overlays. During the COVID-19 coronavirus outbreak, most lenders have raised their minimum credit score requirements. As of today, Gustan Cho Associates have not raised their minimum credit score requirements. We are here to assist you with your mortgage needs seven days a week. For more information on refinancing your current mortgage loan, please call Mike Gracz at 630-659-7644. You may also email firstname.lastname@example.org. We will continue to bring you up to speed on any news we receive. Stay tuned to our YouTube CHANNEL for more Mortgage announcements.