We all know that underwriting turnaround time have been frustrating lately, but there are some common sense things we can all do that help close our loans in the shortest time possible.

Know Your Investors

Every investor has slightly different underwriting guidelines. Learn them. If all of your loans go to a specific underwriter, make certain you know what they look for. If you know, for example, that a specific investor or underwriter always asks for letters of explanation for derogatory credit, send them with the file. Every time the underwriter has to come back to you for an item- you lose at least 2 days.

Submit Complete Files

Imagine Joe Underwriter. It is 3 PM and he has two files left on his desk. The file from Broker A looks like a waste basket in Hurricane Andrew and from Broker A’s past files, Joe knows that once he actually sorts through the paper jungle, half of the required documents will be missing and the other half will be incorrect. The file from Broker B is stacked correctly and neatly (yes-neatness counts) and from past experience Joe knows that everything he needs will be in the file and properly updated. Who do you think will have their approval by 5PM? Make sure you are in the Broker B category.

Know when NOT to wait to be asked

You know what you need. If you are changing a loan amount, for example, send a corrected 1003, LP-DU Accept, homeowners policy etc.… with the change. It is not the Underwriters job to rework loans. Lock your loans and extend locks when required, have the new Loss payee clause, fee sheet, tentative closing dates and a final title commitment ready when needed. You need to know when credit, payoffs and appraisals and locks expire and have updates ready when necessary.

Know when to wait to be asked

Send what’s required-nothing else!! If you are doing a 12 month bank statement program-don’t send 24 months. If W-2’s and pay stubs are required, don’t send tax returns. If you think they may need a divorce decree- don’t send it, but have it in your file ready to go if requested. Don’t send any additional information unless you have an ethical responsibility to do so.

Following these 4 simple steps may save you two weeks or 2 days. Now think of the loans you have lost because the credit expired and you had to pull new credit, or the borrower was resold by their current mortgage holder after you ordered a payoff or VOM and sat waiting for an approval –Don’t lose them next time

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