We're all aware of
"time value of money". Well we should also compare strategic value of a simple action taken at right time, vs. value of same action taken too late in game. The difference can (and usually does) amount to an easy task that has now been transformed into a pressure-cooker, error-prone, last minute nightmare. Whenever possible, use fallow time (between accepting a lender's offer and receiving commitment) to your best advantage, clearing as many obstacles out of way as possible. Anticipate Obvious:
While no one can ever anticipate every possible contingency or problem that might arise during financing process, it's fairly simple to anticipate a number of routine occurrences and requirements, and to sweep as many of them out way as early in process as possible. Clearly, once you have accepted an offer from a lender and you're waiting for commitment to be issued, it's usually a good idea to pull trigger and order title searches. Most real estate attorneys can order title work from a company that they regularly use which is willing to assume risk that if deal does not close, there will be no fees for searches.
Since title work is still one of more primitive and time-consuming parts of process, earlier you start, better. That way there will be plenty of time to deal with delays and to resolve pesky violations or other issues that may arise before stress-laden pre-closing days arrive.
With regard to survey, at very least, make sure you're aware of new lender's requirements. For example, if your new lender will require an ALTA survey, and old survey was not prepared to those specifications, order it once you've accepted an offer rather than waiting for commitment as survey could easily take 4 - 6 weeks. Many surveyors are currently quite busy and not famous for quick turnaround, so by all means don't leave this until end.
Assignment of old mortgage - 1) God-given right, or 2) professional courtesy typically extended?:
"What do you mean, I'll have to pay $154,000 in mortgage tax?!!!!"
No one wants to pay any more mortgage recording tax than absolutely necessary. Remember that if property is in New York City, borrower will have to pay mortgage recording tax for loans above $500,000 of $27,500 per million. Clearly you will want to minimize this tax by having your new lender take an assignment of old mortgage. Let your new lender's attorneys review, comment upon and approve old mortgage and note early, rather than late, in process. This is one more simple step that you and your attorney can take to minimize stress in days leading up to your closing.
