With the recent reduction in upfront mortgage insurance premiums for FHA loans from 1.75% to .85% of the loan amount, there has been a boom in refinancings, along with increased market activity for home purchases. The result? Many lenders are backed up and do not have the necessary manpower available to process/approve loans in a timely fashion. This is especially true with government-backed loans -- FHA and VA - if you are using one of these loans to purchase a home, please give yourself extra time for the loan approval process.
Tony Trabucco is a real estate broker who lives in Old Towne Orange, CA