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best time pf the month for mortgage app

Established Member

best time pf the month for mortgage app

I'm planning on applying for a mortgage in the next few weeks. Is there any truth to its better to apply at the beginning of the month as opposed to the end? I am waiting on my credit card balances to update which should happen in the next 7 or so. I read online that the process is not as long if you apply at the beginning of the month. any truth?

thanks,

Ashley

Message 1 of 11
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Community Leader
Super Contributor

Re: best time pf the month for mortgage app

So if two people with identical profiles (credit, income, assets, etc.) applied for a mortgage from the same lender and person A applied on 1/27/17 and person B applied on 2/3/17, person A would have their loan reviewed/processed/approved prior to person B. 

 

Lenders are often busier at the end of the month due to wanting to fund loans to "hit their numbers", so person B's entire process may be a day or two shorter overall because they weren't caught up in the "end of the month rush" in January, but person A would still get to the finish line before person B.

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 2 of 11
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Established Contributor

Re: best time pf the month for mortgage app

Any time really. The balances do not matter so much as the monthly obligation.

Licensed in IL
Message 3 of 11
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Regular Contributor

Re: best time pf the month for mortgage app

If you're comfortable with your mortgage middle score, you don't really have to wait. If you need a boost on your middle score, waiting until the lower balances post would make more sense.
11-8-15: EQ-594 TU-599 EX-579
11-7-17: EQ-716 TU-722 EX-696
Message 4 of 11
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Super Contributor

Re: best time pf the month for mortgage app

as for best time in regards to balances.... just anytime after they update.

 

is this a refi?  because the pre-approval only takes a couple of hours.

if it is a purchase.... it doesnt matter when you apply. we wouldnt start the process until you are under contract

 

Retired Lender
Message 5 of 11
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New Contributor

Re: best time pf the month for mortgage app

+1 to ShanetheMortgageMan

 

End of month is usually busy for LOs. I know I am, trying to get loans closed and funded, and my trying to calm the nerves of frazzled borrowers. We feel the stress too.

 

I will say, borrowers can somewhat dictate how fast their loan gets CTC. There are some static wait times on some things, appraisals chief among them, but gathering conditions, a loan processor can only call and email so much. The borrower has to provide the documents, ultimately. It amazes me when borrowers call and scream at me when their loan file hasn't moved in three weeks and they still have a page long list of conditions they haven't addressed. Sounds harsh, but it does happen.

Starting 12/27/16 FICO Score 8 EQ 645 TU 643 EX 618
Current 6/27/17 FICO Score 8 EQ 797 TU 804 EX 782


Goal 740+ ACHIEVED 4/5/17 FICO Score 8 EQ 776 TU 762 EX 748
Message 6 of 11
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Moderator Emerita

Re: best time pf the month for mortgage app

There is always an end of the month rush. The buyer can help smooth out that rush by making sure their closing date is not scheduled for the last week of the month and by getting in the requests by the processor and underwriter timely (as mentioned above).  There is no reason to schedule the closing date for the busiest time of the month.

 

I schedule closings for the first, second, or third weeks if possible and I try to schedule closings for a Tuesday, Wed, or Thursday rather than on a Friday.  This seems to help keep the meltdowns by the buyers and the sellers to a minimum. Also, allow enough time for the lender to process the loan. Ask your LO how long it takes - some lenders need 30 days others need more.  If the lender you use takes an average of 35 days to process a mortgage, scheduling for 30 days isn't going to push the lender any harder. It will just stress you out. JMO. 

Message 7 of 11
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Super Contributor

Re: best time pf the month for mortgage app

yes, please, tell the realtor it doesnt need to close by month end.

 

i have been lied to a million times about why it must close by month end. in the end, it 'usually' has to do with timing of realtor getting paid.

 

Retired Lender
Message 8 of 11
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Moderator Emerita

Re: best time pf the month for mortgage app


@DallasLoanGuy wrote:

yes, please, tell the realtor it doesnt need to close by month end.

 

i have been lied to a million times about why it must close by month end. in the end, it 'usually' has to do with timing of realtor getting paid.

 


DLG, I usually agree with you. But in this circumstance I disagree. Most Realtors get paid at closing or within 1 to 3 business days after closing (a few companies take up to 10 business days) no matter when the closing happens. Since we don't get paid traditionally (weekly nor bi-weekly nor monthly) it doesn't make any sense to schedule the closing for the last day of the month when both the lenders and the title companies are the busiest.  If the lender is crunched for time and the title co has too many closings scheduled for the same day, it can lead to errors. JMO. 

 

The reason buyers have given for wanting to close on the last day:

  • Their lease is ending and they need to move
  • They want to close on a Friday so they can spend the weekend moving
  • Pre-paid expenses are lower because only one day or a few days is counted rather than X days 

 

Message 9 of 11
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Established Member

Re: best time pf the month for mortgage app

Thanks, I am still waiting on 1 credit card to update then I'll pull my mortgage scores to see where I am, hopefully I will be applying by the end of the week. and since I am expecting a new baby in July I will go ahead and apply as soon as a can. Thanks for your help!

 

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