• Why are many "Prequalification" letters worthless?!

Very often what happens is - a Loan Officer will look at the credit report for the scores and a single W2 for the income, and make a quick calculation about whether a mortgage can be approved for a certain price house, and then issue the Prequal letter because that's literally all they had time to do. 

HOWEVER, until a borrower's file has been run through the AUTOMATED underwriting systems to see what approval will be achieved, the Prequalification letter truly has no meaning.  PLUS, even with an automated underwriting result, the case is not a sure thing UNTIL the Loan Officer has reviewed the tax returns.   Such as, if you have had W2 income for the past five years and it's steady every year, BUT your tax return shows that you are writing off work related expenses every year, which decreases your 'Adjusted Gross Income' - then in that case it won't be until after the lender starts to underwrite the file, that the "actual effective income for mortgage purposes" issue will be discovered... leading to a "BUSTOUT" two weeks (or even FOUR weeks) after you signed a contract on a house, ouch! 

POSITIVELY - Andrew Taft will never issue a Prequal letter without running the file though the AUS, and also viewing (or thoroughly discussing with you) what is in your last two years tax returns.  Either way, it's very urgent for the Loan Officer to SEE what is in your tax returns, and Andrew Taft will not give out a Prequalification letter without doing so.  

  • Why does it take so long for many lenders to underwrite and approve a mortgage for a house purchase, and schedule the closing?

The fact is, it doesn't - or in other words, it shouldn't! 

Here's what happens:   When you sign a contract for a house, you will have an Option Period which could range from 7 to 10 days.  And then, MANY times, a lender will do absolutely NOTHING until the option period is over, because they do not know if you will possibly cancel the contract during the option period if mechanical issues are discovered.   So just right there, you have eaten up 10 days.... next, the lender orders the appraisal, which these days can easily eat up 14 days or even longer, so now you are at 24 days.  Next, it's very common that there may be issues with the appraisal that need clarification, which can take another 3 days, and now you are at 27 days, WITHOUT any other issues of any significance coming along, which can easily happen, adding even more time to the case!   And that's why "working in series" as above rather than "working in parallel" will typically require 45 days or more to close an otherwise straightforward mortgage file.

How is C2 Financial able to close faster??

As the largest mortgage brokerage in the U.S., C2 Financial has relationships with the top 100 wholesale lenders in the U.S.; most of which have set up their systems to respond very quickly on purchase files, and avoid the "hurry up and wait" syndrome described above.  One particular lender that C2 Financial represents is the largest wholesale lender in the U.S, with more annual volume than Wells Fargo and Bank of America, and that lender has averaged better than a TWENTY DAY turn time on home purchase files for the past year!   

If you need to close FAST, call Andrew Taft!