How To Be Prepared At Application

The mortgage industry has changed quite a bit from a few years and months ago...heck sometimes even just days ago.  Changes are the norm so I'm writing this to help you with the application process as this day in age it's documentation, documentation, documentation and for some people this can become annoying and upsetting at times. 

Do not get upset or frustrated as the industry, one loan at a time, is trying to restore confidence in the marketplace and to investors.  The key to making the process smooth is several fold but the most important thing is your initial file quality at submission on your application for financing. 

The more prepared you are upfront...... the better!

When your loan officer asks for something - get it turned in as quickly as possible so there isn't any delays in the process. 

There is an extreme amount of pressure put on them to turn things around when documentation is delayed being turned in and will, and does, cause for the need of extensions to your closing.  This can be unnerving and complicate things for you.




Stressed!


Everyone's situation is different and sometimes additional documentation is requested. 

Realize that there are some issues, concerns, and compliance requirements on the back end that we as consumers don't see or always here about, so underwriters are checking, double checking, and sometimes over conditioning the loan files; but this is an attempt to make sure all compliance rules and regulations, file quality, and documentation requirements are being met.

When making application make sure you have all of your income and bank account information (to all accounts) available.  Since each loan is different more documentation maybe requested and this is not all inclusive, so in preparation have ready:

• The last three years of income tax returns (make sure page 2 is signed and include business returns if self-employed), w2's (all w2's for all jobs) and a full months of paystubs.

• Be prepared to explain any changes in income or if you've had multiple jobs in the last 2 years

• Bank statements should be all pages even if one says "intentionally left blank"

• Be prepared to explain any credit inquiries you've had recently and if any new debt was acquired from this inquiries.  People ask about this all the time but the idea is if more debt it out there that is unknown, this has an impact on your debt-to-income ratios and your ability to repay the mortgage

• Be ready to explain any large and unusual deposits into your account (untraceable cash deposits are not acceptable) to prove they are from an acceptable source.

• Explain any derogatory or late payments on other credit accounts and collections

Again, this is by no means all inclusive but is a short list of items you'll need and other things to be prepared for when meeting with your loan officer.  The better quality your loan file is at submission, the smoother your process will be. 

Remember - there are many parts of the process that are not under the control of the lender so communication is key as everyone is working toward the same goal - closing.


God Bless,