The loan process can be a tricky thing. Sometimes it is smooth sailing and sometimes it can be a bumpy road. It is however, always a partnership. A partnership between the borrower and the lender. If both the borrower and the lender work together and communicate then typically the entire transaction goes smooth. My goal with each loan is to make the process as simple and painless as possible. My team and I communicate upfront with our borrowers the step by step process that their loan will go through. We in turn also let our borrowers know that there are some things that they should and should not do while trying to get their loan. I thought that it would be helpful to let you in on the not so secret list of things that you need to know as a borrower.
1. Be thorough – I cannot stress this enough. When you are given the list of items needed, read and checkoff every item. When we have complete documentation it makes the process go faster and smoother. This is also important later when the underwriter has reviewed your loan and handed down a conditional approval. At this time it is extremely urgent that you return any requested items as soon as possible and be sure that you do not miss anything. Any missing information or items could delay the closing of your loan.
2. Don’t apply for any new credit – As tempting as it may be to go out and buy all new furniture for your new home, financing this could prove to be a problem with your new loan.
3. Don’t make any major changes to your credit – On top of not opening any new credit, don’t close any accounts or transfer any balances. Doing these things could end up in your credit score lowering. Better to wait until after closing to make any changes.
4. Don’t move money from accounts without a paper trail – When getting a new loan we will need your 2 months most recent bank statements. If there are unusual deposits, you may be required to source and explain what they are. If you need to move money from accounts to cover what you will need to bring in for closing I advise that you move that money prior to applying for your mortgage. If you cannot, make sure you have accurate and complete documents and records for the funds readily available.
5. Let us know upfront if you have travel plans – While it is ideal for you to be available during the entire loan process, we know that some things cannot be avoided. Please keep us in the loop.
6. Don’t switch jobs while trying to get a new loan – Sometimes this cannot be helped, if you do need to change jobs please keep us informed as soon as possible.
7. Don’t deplete your savings – Just like opening new credit, it is important that your financial situation not have any drastic changes. You will most likely need to bring in some money for your down payment or you may be required to have a certain amount of money in your accounts as reserves to qualify for the loan.
My team is committed to being accurate and providing you with the most up to date information about your loan. Constant and open communication is an important factor in having your loan close on time and with no major issues. We work tirelessly to get you a quality loan and get it to you on time.
Let me know if I can help you or someone you know with a new loan. Let us prove to you how great we are!