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How Long Does It Take to Get a Mortgage?

July 9, 2024 / Tom Bonetto

I’m asked regularly about mortgage related time-frames…as sometimes clients need to close their transactions quickly.

Instead of getting conditionally approved in a few days (or even 24 hours – like what was happening about 15 years ago), loans are thoroughly processed before even landing on the underwriter’s desk.

Because there are a ton of regulations and timelines lenders have been forced to work with, the average loan closing will take anywhere from 20 to 40 days, depending on many circumstances.

This means the actual loan approval might take a couple weeks, but it will generally be a firm one with few if any remaining conditions.

Interestingly, around the mid-to-late 2000s, mortgages could close really quickly. This was partially because underwriting guidelines were much more flexible (and some might say ‘non-existent’), and also because lenders were well-staffed and very competitive.

However, those days have changed, due to a myriad of factors.

The Pre-Qualification in Key

In order for a real estate agent to best help you find that right home, it’s vitally important to know how much “house” you can afford. That’s why you should reach out to the right Mortgage Professional first, before you contact an agent and start looking at houses.

Your chos en lender should sit down with you to assess your goals and objectives – and then help you choose the optimal loan program that best fits your needs. The first step in this process is the pre-qualification.

Home sellers and their real estate agents generally insist that home buyers submit a valid pre-qualification letter along with their initial offer for the home.

Essentially, sellers don’t consider offers from people who haven’t taken the time to determine if they can even get approved for a loan in the first place.

You can find out more on pre-qualifications here…

Why Do Mortgages Take So Long?

Many different parties are involved in the mortgage and/or home buying transaction
There are regulated timelines that must be followed
The home appraisal can also take up to a few weeks to be completed

Like most things in the mortgage world, it’s difficult to generalize because every loan (and every borrower) is uniquely different. With that said, here are a few reasons why the loan process takes a bit:

So it’s best to be patient and cooperative to ensure a smooth closing!

Complex and Elaborate

The mortgage process is very involved and requires a lot of hands to touch the loan before it actually closes.

We’re talking a loan officer, an underwriter, a processor, an appraiser, a title company, escrow company, an insurance company, a funder, a closer, and possibly more. That’s a lot of hands in the dough!

The same goes for mortgages.

Even in a best-case scenario…say you are a well-qualified borrower with a W-2 job, one bank account, and with excellent credit score with no recent activity…even refinancing a conforming loan, can still take several weeks.

Appraisals

Sometimes, the delay can be due to the home appraisal, which is essentially required to independently determine the value of the property in question.

Lenders will not lend if they don’t know the value of the property, so they will to order an appraisal. This process can take 5 to 10 days, depending upon the schedule of the appraiser.

This is why lenders will often want to book the appraiser early on so they can get it done and delivered to underwriting.

In Conclusion

The mortgage process isn’t the quickest, but that really can help buyers make sure the loan they are qualified for AND the property they are buying are the right fit.

I’ve done loans in as quick as 17 days, so if you are looking for an usually quick close, let me know and I’d love to help!

The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.

Mind Games: What Makes a Great Baseball Player

July 8, 2024 / Tom Bonetto

I’m linking to a very interesting article by Andrea Thompson at Live Science. She’s analyzing Mike Stadler’s book “The Psychology of Baseball”.

While all sports involve a certain amount of psychology to strategize and plan in given situations, baseball is unique as there are so many different mental factors at play.

You can f ind Stadler’s book here…

And you can fi nd Thompson’s article here… and I’d invite you to read the entire piece!

Some key takeaways…

“Baseball is impossible without psychology: impossible to play, and impossible to appreciate fully as a fan,” Stadler wrote. “Watch any game, and most of what you see is thinking.”

Here are more excerpts from the Stadler book…

Mental agility

“Most baseball players have extraordinary capabilities to coordinate physical and mental processes, including fast reaction times, focus and high visual acuity.

Studies conducted by Columbia University on Babe Ruth while he was playing showed that he could react to visual and sound cues much faster than the average person and that he had better hand-eye coordination than 98.8 percent of the population.

Baseball players tend to have excellent vision, which allows them to see things like the spin on a curveball hurtling toward them at home plate, cues they can use to get a hit.

Reaction time is also critical in baseball, and the better players seem to have better reaction times. There’s some suggestion that this could simply be a matter of having more practice, “but you actually find even within really highly skilled players, the players at the higher end, the faster reaction times still tend to have higher batting averages and be slightly better hitters,” Stadler told LiveScience.”

“Most baseball players do have pretty good vision; a huge proportion of them test at better than 20/20,” Stadler said.

Baseball “Personality”

“Besides the physical process and acute mental abilities, successful baseball players also typically have certain personality traits—this is perhaps best exemplified by the diverging career paths of Darryl Strawberry and Billy Beane, Stadler said.

Both players were drafted by the Mets in 1980 (Strawberry was picked much higher than Beane)—the team even had trouble deciding which player to pick first because of their comparable athletic abilities. But while Strawberry came to be one of the best hitters in baseball, Beane couldn’t hack it in the majors (though he went on to become General Manager of the Oakland A’s).

“Beane was just sort of crushed by the pressure of the batter’s box, just didn’t have that sort of self-confidence, almost arrogance, just to know, ‘I do this well. I’m fine. So what I just struck out, I’m going to hit next time,'” Stadler said.

Strawberry displayed the exact opposite reaction: “You can look at some of Strawberry’s early interviews when he broke into the league and was struggling a little bit as player’s naturally do, but he, even then he just said, ‘I know I’m a good hitter. I’m going to hit plenty of home runs,'” Stadler said. “He just wasn’t worried about the pressure.”’

Player Variability

“When a player starts to have a spate of really bad or good games, fans can get involved in the psychology of “streaks” or “slumps”. But Stadler says that research has shown that these supposed trends are really a matter of fans not taking in the big picture.

“It’s hard for the fan to take that really long view and keep in mind the player’s whole career as opposed to just the last few games’ performance,” he said.

Fans also tend to ignore how much baseball statistics can mask a players’ actual performance. A hitter may have a sub-par batting average, though he is still hitting balls really hard—they’re just hit to fielders who catch them.

In his book, Stadler mentions an interview with pitcher Greg Maddux after a streak of no-hit innings, where Maddux said he just got lucky because some guys hit balls really hard, but hit them right at a fielder.

“I think the players can kind of see that distinction in ways that, you know, because they’ve been around the game so much, that fans … might not be able to see that as the players are,” Stadler said.”

6 Ways to Improve Your Chances of Qualifying for a Mortgage

June 24, 2024 / Tom Bonetto

It can seem like a daunting task to actually qualify for a mortgage. But really, that’s not the case, as it absolutely can be done!

With that said, being well-prepared can significantly improve your chances of approval.

Here are six ways to enhance your prospects:

1. Improve Your Credit Score

Your credit score is a major factor in mortgage approval. Lenders use it to gauge your reliability as a borrower. To improve your credit score:

Pay all bills on time, as punctuality has a significant impact on your score.
Reduce outstanding debt, particularly credit card balances.
Avoid opening new credit accounts close to your mortgage application date.
Check your credit report for errors and dispute any inaccuracies. A higher credit score not only increases your chances of approval but also helps you secure a better interest rate.

2. Save for a Down Payment

A substantial down payment can strengthen your mortgage application. It reduces the loan amount and demonstrates your financial responsibility.

If you are able, try to save 20% of the home’s purchase price to avoid private mortgage insurance (PMI) and lower your monthly payments. But even if you can’t reach 20%, a larger down payment still improves your application’s appeal by lowering the loan-to-value ratio (LTV).

Fortunately, in today’s environment, there are great low down-payment options available. Find out more here…

3. Stabilize Your Employment and Income

Lenders look for steady employment and consistent income. To enhance your mortgage approval prospects:

Maintain stable employment, ideally with the same employer, for at least two years.
Document all sources of income, including bonuses, overtime, and secondary employment.
Avoid making significant career shifts close to your application. A stable employment history reassures lenders of your ability to meet monthly mortgage payments.

4. Reduce Your Debt-to-Income Ratio (DTI)

Your debt-to-income ratio compares your monthly debt payments to your gross monthly income. To improve your DTI:

Pay down existing debts, focusing on high-interest loans and credit cards.
Avoid taking on new debt before and during the mortgage application process.
Increase your income through a side job or additional work hours, if feasible. A lower DTI indicates to lenders that you have sufficient income to manage your mortgage payments alongside other obligations.

5. Gather and Organize Financial Documentation

Lenders require extensive documentation to assess your financial health. Be prepared to provide:

Recent pay stubs, W-2 forms, and tax returns.
Bank statements for checking, savings, and investment accounts.
Documentation of any additional income sources, such as rental income or alimony.
A list of all monthly debt payments and living expenses. Organizing these documents ahead of time can streamline the application process and demonstrate your preparedness and financial responsibility.

6. Get Pre-Approved for a Mortgage

Obtaining pre-approval from a lender shows that you are a serious buyer and gives you a clear understanding of your borrowing capacity.

To get pre-approved:

Submit your financial documentation for an initial review by the lender.
Discuss your financial situation and home-buying goals with the lender.
Obtain a pre-approval letter that specifies the loan amount you qualify for. Pre-approval not only boosts your credibility with sellers but also helps you stay within your budget and avoid falling in love with a home you cannot afford.

In Conclusion

Of equal importance is to have the right mortgage lender with you during this process. I can help walk you through these steps and coach you along the way! Do reach out to me for more…

The Top 9 Mortgage Mistakes To Avoid

June 11, 2024 / Tom Bonetto

Navigating the mortgage process can be challenging, especially in today’s environment.

Making the right decisions is crucial to avoid common pitfalls that can lead to financial strain or missed opportunities.

Here are the top 9 mortgage mistakes to avoid:

1. Not Checking Credit Reports and Scores

Failing to review your credit reports and scores before applying for a mortgage can result in unpleasant surprises. Errors on your credit report or a low credit score can lead to higher interest rates or even loan denial.

Ensure your credit is in good shape by correcting errors and paying down debts before applying.

2. Not Getting Pre-Approved

Skipping pre-approval can leave you unprepared in a competitive housing market. A pre-approval letter shows sellers you are a serious buyer and gives you a clear idea of how much you can afford, streamlining your home search and negotiation process.

3. Choosing the Wrong Mortgage Type

Different mortgages have varying terms and conditions. Failing to understand the differences between fixed-rate, adjustable-rate, FHA, VA, and other loan types can result in higher costs over time.

Research and choose a mortgage that fits your financial situation and long-term plans.

4. Ignoring Additional Costs

Only focusing on the principal and interest payments is a common mistake. Homeownership includes property taxes, insurance, maintenance, and possibly private mortgage insurance (PMI).

Calculate these additional costs to ensure your budget can handle the total expense.

5. Making Major Financial Changes Before Closing

Avoid making significant financial changes, such as switching jobs, taking out new loans, or making large purchases, before your mortgage closes. Lenders recheck your financial status before final approval, and such changes can jeopardize your loan.

6. Overextending Your Budget

Qualifying for a mortgage doesn’t mean you should borrow the maximum amount offered. Consider your overall financial health and future expenses.

A mortgage that stretches your budget too thin can lead to financial stress and difficulties in managing other obligations.

7. Overlooking Loan Terms and Conditions

Not fully understanding the terms and conditions of your mortgage can lead to costly mistakes. Read the fine print and ask questions about any unclear terms, such as prepayment penalties, adjustable-rate terms, or the implications of late payments.

8. Skipping the Home Inspection

Foregoing a home inspection to save money or expedite the purchase can backfire. An inspection can uncover hidden issues that might require costly repairs.

Use the inspection results to negotiate with the seller or reconsider the purchase if significant problems are found.

9. Ignoring Refinance Opportunities

Once you have a mortgage, staying complacent can be a mistake. Regularly review your mortgage terms and market conditions.

Refinancing when interest rates drop can save you money, but be mindful of the costs involved to ensure it’s a financially sound decision.

In Conclusion

Avoiding these common mortgage mistakes requires careful planning, thorough research, and staying informed throughout the home-buying process. Make sure to team up with the right mortgage lender to walk you through the process.

By taking proactive steps to manage your credit, budget, and loan options, you can secure a mortgage that aligns with your financial goals and helps ensure a stable and sustainable homeownership experience.

Most importantly, d o reach out to me for help!

Slowing Down the Game and Getting into “The Zone”

June 10, 2024 / Tom Bonetto

We’ve all heard about the game can seem to move at a slow pace for my players who are “in the zone”…so how can a player get there?

man wearing black cap with eyes closed under cloudy sky

Many athletes, and baseball players in particular, use multiple techniques to focus and help the game “slow down”, allowing them to perform at their best in high-pressure situations.

Here are seven strategies that involve mental and physical practices that players can use to enhance their concentration, reduce anxiety, and improve decision-making.

Here are some key ways players achieve this focus that can allow the game to “slow down”:

1. Pre-Game Routine

Players often establish a consistent pre-game routine that helps them get into the right mental state. This routine can include activities like stretching, visualization, listening to music, or engaging in breathing exercises.

By following the same steps before every game, players create a sense of familiarity and control, which can reduce pre-game jitters and increase focus.

2. Visualization

Visualization is a powerful technique used by many athletes, including baseball players. They mentally rehearse different scenarios they might encounter during the game, such as hitting a fastball or making a difficult catch.

By visualizing success, players can build confidence and prepare their minds for actual gameplay. This mental rehearsal helps players anticipate actions and reactions, making real-time decision-making more instinctual and less rushed.

3. Mindfulness and Breathing Exercises

Mindfulness practices and controlled breathing exercises help players stay present and calm under pressure. Techniques such as deep diaphragmatic breathing or box breathing can slow down the heart rate and reduce anxiety.

Staying mindful allows players to focus on the current pitch or play without being distracted by past mistakes or future outcomes. This heightened state of awareness helps them process information more clearly and react more deliberately.

4. Focusing on the Process

Experienced players often emphasize focusing on the process rather than the outcome. This means concentrating on what they can control, such as their stance, swing mechanics, or fielding technique, rather than worrying about the result of a hit or play.

By breaking down the game into smaller, manageable tasks, players can maintain a high level of concentration and prevent the game from feeling overwhelming.

5. Positive Self-Talk

Positive self-talk is another crucial technique. Players use affirmations and encouraging phrases to maintain a positive mindset. This practice helps combat negative thoughts that can lead to anxiety and distraction.

For example, a hitter might remind themselves of their strengths or recall past successes before stepping into the batter’s box. Positive self-talk reinforces confidence and keeps the mind focused on the present task.

6. Developing a Strong Mental Game

Mental toughness is developed through experience and intentional practice. Many players work with sports psychologists to enhance their mental game. These professionals provide strategies to deal with pressure, maintain focus, and bounce back from setbacks.

Techniques such as goal setting, mental imagery, and relaxation exercises are often part of this training. Building a robust mental game enables players to stay composed and focused during critical moments.

7. Staying in the Moment

In high-pressure situations, the ability to stay in the moment is crucial. Players practice grounding techniques to keep their attention on the immediate action.

This can include focusing on sensory details, such as the feel of the bat, the sound of the ball hitting the glove, or the sight of the pitcher’s release point.

By anchoring themselves in the present moment, players prevent their minds from wandering and maintain a clear focus on the task at hand.

In Conclusion

Baseball players can use a combination of things, ranging from pre-game routines to grounding techniques to enhance their focus and slow the game down.

These strategies help them manage pressure, stay calm, and perform at their highest level, ultimately contributing to their success on the field.

The Lending Coach

How Long Does It Take to Get a Mortgage?

The Pre-Qualification in Key

Why Do Mortgages Take So Long?

Complex and Elaborate

Appraisals

In Conclusion

Mind Games: What Makes a Great Baseball Player

Mental agility

Baseball “Personality”

Player Variability

6 Ways to Improve Your Chances of Qualifying for a Mortgage

1. Improve Your Credit Score

2. Save for a Down Payment

3. Stabilize Your Employment and Income

4. Reduce Your Debt-to-Income Ratio (DTI)

5. Gather and Organize Financial Documentation

6. Get Pre-Approved for a Mortgage

In Conclusion

The Top 9 Mortgage Mistakes To Avoid

1. Not Checking Credit Reports and Scores

2. Not Getting Pre-Approved

3. Choosing the Wrong Mortgage Type

4. Ignoring Additional Costs

5. Making Major Financial Changes Before Closing

6. Overextending Your Budget

7. Overlooking Loan Terms and Conditions

8. Skipping the Home Inspection

9. Ignoring Refinance Opportunities

In Conclusion

Slowing Down the Game and Getting into “The Zone”

1. Pre-Game Routine

2. Visualization

3. Mindfulness and Breathing Exercises

4. Focusing on the Process

5. Positive Self-Talk

6. Developing a Strong Mental Game

7. Staying in the Moment

In Conclusion

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