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About HERON FINANCIAL GROUP, LLC
Heron Financial Group is a Registered Investment Advisor serving individuals and families across the United States, Europe, Asia and Latin America.
Our clients are corporate executives, managing partners of law firms and consultancies, Wall Street professionals, owners of businesses, and heads of families.
Our purpose is to clarify and simplify the means by which our clients will achieve their financial goals.
Client relationships range from $500,000 to $10 million in assets. |
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It has never been easier for qualified buyers to secure a mortgage. Yet at the same time, it's never been harder. Many buyers, including affluent ones, find themselves submitting reams of paperwork in a grueling application process that stretches for months. Sometimes, the process drags on so long that a rate they have locked in expires.
It doesn't have to be that way. Yes, requirements for mortgages have gotten more complicated in recent years, but, as a senior loan officer at Evolve Bank & Trust, I have seen many transactions completed in 30 days or less.
When a transaction takes months, it is usually because the loan officer at the bank does not have everything in sync with other key players in the transaction, such as the homeowner's insurance agent, the title agent, the appraiser, or the attorneys for the buyer and seller.
Choosing the right loan officer and bank is the number one step you can take to speed up your transaction. To make sure you have found a team that can help you close a transaction quickly, get a referral to a loan officer from a trusted professional such as your CPA, attorney or financial advisor. These professionals should work with your loan officer to make sure your transaction suits your best interests.
Once you have a referral, ask the loan officer these key questions:
How do you get your clients? Some lenders rely solely on referrals from trusted advisors and past customers. They are likely to make a greater effort to keep you happy than those who buy leads from credit agencies and other vendors. They want to maintain healthy relationships with trusted advisors who regularly refer clients.
What is the typical time it takes your clients to get from application to closing? It can take some lenders 45 to 90 days. Finding this out up front can save you a lot of frustration if your time window is shorter.
Also ask how long it takes to close a loan after the bank issues a commitment. Some lenders issue a "commitment or approval" with lists of up to 60 conditions that need to be satisfied as a starting point and then figure out if they can get you a loan.
Do you work with specific processors and underwriters? Getting a mortgage is a complex financial and legal process that requires the coordinated effort of multiple people at a bank working together. It will move more quickly if your loan officer works regularly with one team, rather than a random group assigned to the loan process by the bank.
Of course, lenders aren't the only parties with the power to speed up a transaction. If you want to close quickly, make sure you do your homework, too. Find out ahead of time if you need to sell your home to qualify for a mortgage and if there are any factors that may prevent the seller from vacating on time. If a coop board is involved, inquire about how long it will take to approve you and your loan. And get the home inspected before you sign any contract, so that does not delay the transaction.
It is also important to have relevant records at your fingertips, so you can get them to your loan officer quickly. The bank will want to verify your income, no matter how affluent you are, so start a folder with all bank statements and pay stubs, and document financial gifts. Keep the folder current.
Once you begin the transaction, remain just as scrupulous about record keeping. Make front and back copies of down payment checks you provide to the seller, which you will need later in the process. In addition, get the draft contract to your lender as soon as possible in order to make sure it won't slow things down. Some clauses in standard contracts complicate the mortgage process. "No FHA" clauses must be removed if you are trying to get a Federal Housing Administration loan. Many contracts also contain restrictive commitment and settlement dates. A good loan officer will help you spot these right away-so you can close the transaction and move into your new home sooner rather than later.
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Yours sincerely,
Lyle Katz
Evolve Bank & Trust
Disclaimer: This article has been written for informational purposes only and describes a selection of considerations when buying a contemporary artwork. This is not an exhaustive list and the items on this list may not be applicable to your situation. You or the art professional you are working with should do your/ their own due diligence when purchasing an artwork. No part of this article should be taken as advice on purchasing art; investment advice or advice for or against investing in art. © Annelien Bruins 2014. All rights reserved.
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The HERON FINANCIAL GROUP Financial Markets Commentary is published following month end and whenever market conditions require comment. The views expressed in this letter represent HFG opinion and strategy as of the date published and can change at any time upon receipt of new information. Data quoted in this letter are from sources deemed reliable, but no guarantee of such data is implied. |
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