Buyers, Do Your Financial Homework

The loan approval process has become increasingly difficult in today’s    financial real estate market. Banks continue to lose millions of dollars through  shorts sales and foreclosures which significantly affects the way they quantify  a new buyer. Therefore, the loan process can be a complex and sometimes  frustrating process.

First, find a direct lender you trust and stay with them. If you are in escrow,  you can’t change lenders without jeopardizing the transaction. Buyer  contingencies are supposed to be removed in 17 days which means that you  should have your full loan approval by then. If you switch lenders, you won’t be able to make that deadline, and the seller/bank will cancel the contract on you.
Second, ask all your financial questions up front. You should ask about interest rate, origination points, underwriting fees, processing fees, admin fees, credit report fees, appraisal fees, and any other fees you see on your Good Faith Estimate (GFE). Your GFE is what you should use to compare lenders. This form is very important and should be explained (in detail) by your Lender.
Third, ask to receive a complete Fannie Mae DU (desktop underwriting) APPROVAL before you begin shopping for a home. To get a full approval you will need to supply all the required documents which will include; 2 years of tax returns, W-2s (or 1099s for the Self Employed), current paystubs, bank statements, 401(k) and IRA statements, cancelled rent checks, and almost always letters of explanation regarding some or all of your paperwork. Furthermore, once your credit is pulled, get a copy and go over it thoroughly with your lender.
Lastly, make sure your Lender and Realtor are in constant contact during your home buying process. I like to “CC” my clients with daily email updates from the Lender. Your Realtor is the point person and has a duty to guide and protect your interests so that you make the right choices.
Call or email me for a list of trusted Yorba Linda Lenders that will take the time to explain the “Home Buying Process”.
Sabrina Solesbee, SolesbeeGroup.com            www.YorbaLindaLiving.com