Getting Organized For a Mortgage Loan
Thinking of applying for a home mortgage? Organizing the information required is necessary. I take a lot of applications by phone and we work through the necessary data right there and then on the phone. If the applicant has not already organized their information for a home mortgage, then starting immediately following the application is not too soon.
Some typical documents one may need are pay stubs, W-2's, bank statements, along with photo I.D. Different loans need differing data, for instance for a refinance a copy of the last couple of statements from the current mortgagee may be needed or a copy of the note. So information can vary. Best practice is to ask what documents are needed and make it a priority to begin gathering that information.
Why is it important to be organized with the information request? Underwriters do not have the benefit of talking with applicants so the information they receive needs to be thorough, accurate, well documented, legible and make sense. Another reason is that a well organized borrower speaks volumes when it comes to the speed of underwriting. A well organized file is much more fun to work on, believe me.
After an underwriter reviews a file often they will ask for further documentation. This is not to be taken as a red flag on the file, rather it is an item the underwriter needs to document for their approval or an investor's approval. Underwriters are experienced and if they are asking a question it is because they have to ask the question. When they ask for a specific document a substitute document is not acceptable.
When one has done this work as long as I have I tend to anticipate what is needed in a file and I like to give the underwriter a well organized file; I want them to come to expect that from me. I want them to see my file and open it with joy knowing it will be well organized.
By submitting a complete file it is possible to get an approval in one submission. If something is missing and needs to be added two submissions to underwriting is not unusual.
When submitting files if we need 5 things we don't submit each one as we get it, rather it is all submitted in on batch, therefore it is important to gather all the information asap. Equally important is that the information be legible. Information provided is printed, scanned, resent, staring with a bad copy just gets worse.
Moral of this story is to organize your data for a mortgage loan. If you are not sure what is needed get clarification. It really smooths out the process.
Comments(1)