Mortgage Application Tips

Mortgage Application Tips You Can Use

Plan on buying a home soon or in the near future? You will need to be prepared when you go apply so keep these helpful tips handy when visiting your bank, credit union, or mortgage broker. It's very important in this lending environment we find ourselves in to be properly prepared at application to avoid delays in closing your loan on time.

The documentation and accuracy of information is key right now.  Lenders are seeing many loans being audited and being found deficient of the proper supporting documentation by the time it makes to post closing review.  This causes significant fines and penalties and can lead to buybacks (this is when the investor such as FHA or Fannie Mae forces the lender to buy back the loan due to deficiencies found)

So here are some helpful tips to make sure your application process is smooth.

• Provide complete and accurate information on current residence, employment history, any other mailing address you might use, and banking account information including full account numbers.

• Have all the proper documentation as it relates to your situation, ie if you're employed make sure you have two years of w2's; if you're self employed make sure you have personal and business tax returns with ALL schedules and signed for the last 2 years.  Be prepared to answer questions regarding decrease in income if applicable.

• If you own rental property make sure you have complete addresses with estimated values and correct rental amounts and expenses like taxes and insurance information for EACH property

• Have the most recent paystubs available covering the most recent 30 days and make sure they are consecutive in pay periods.  Example: you get paid weekly - just check your stubs to make sure all the checks are for the last 4 week period

• Be prepared for more requests for additional documentation or explanation of information you submit to underwriting.  Now more than ever scrutiny is being placed on lenders so when underwriters request this documentation they are only trying to make sure they have no material findings in the file when audited.

• Stay calm during the process. If delays occur know that this is common these days as lenders are running short staffed and are having difficulty finding qualified people to hire.  During the housing bust many people left the industry to seek employment elsewhere and do not want to leave the new place of employment for a position that may not be permanent. 

• When asked submit documentation as quickly as possible to avoid further delays

• Be patient.  There is a lot of activity going on right now in the housing market with purchases and a refinance boom so it's best to remain calm, patient, and do not make significant concrete plans just in case a delay occurs.  This will onlly frustrate you more.

By following these simple tips you can avoid alot of frustration and emotional hills and valley's during the process.