I tell folks two things these days and both can result in great opportunity. There is an abundance of inventory (houses) in most markets and the money (interest rates) is still cheap. That said, Lenders & Banks are combing through files with a fine toothed comb these days; everything has to be pretty much perfect. No more of the days of throwing things against the wall, lax & scattered documentation, or loan files that are missing this or that or that other thing they are asking for, other than that blood sample;-)
So, if you aren't informed... it's time to become such. You, the consumer, have more power than you think in your mortgage loan closing sooner rather that later. Create a file, whether you are a renter or current homeowner, of the things I will mention below. When the time comes to buy a home or refinance the one you are already live in, it will make your life that much easier. If you are looking to refinance, only a few things from the first few lines apply to you...
* Last 2 years W-2's and 2 most recent pay-stubs
* If you are a renter, have your Landlord's name, address, and phone number handy. Make sure you have that info for the last 2 years of your rental history.
* Make sure, if you are renting, to pay your rent by check. Keep copies of your last 12-24 months of cancelled rent checks. This gives you a documented housing history, that's HUGE in the Lender's Financial Eyes.
* When you find that home of your dreams, or at least the one that will be your starter home, a signed sales agreement from all parties (buyer and seller) will be needed.
* Typically, the only money out of a pocket prior to closing is for the appraisal. It is a third party fee, paid directly to the professional who will do a market evaluation of the worth of your home.
* Last 2 Months Bank Statements (All Pages) & the most recent statements on all asset accounts (401K, IRA, Mutual Funds, Retirement, Etc.)
* If you are Self-employed, you'll need the last two years tax returns with all schedules and attachements... along with a year-to-date Profit & Loss for your business.
* For purposes of identification, you'll need copies of your social security card and photo I.D. (typically your Driver's License)
* If you are refinancing, you'll need many of the things above... but will also need your most recent mortgage statement & homeowner's insurance deck page (which is the top page of your homeowner's insurance). It's also a good idea to get copies of your most recent statements on all other accounts you want to pay off... assuming you want to consolidate high interest debt.
* If you own more than one property, you'll need the most recent Mortgage Statement, Homeowner's Insurance Deck Page, & copy of any leases you have on rentals.
* Any credit issues (late payments, bankruptcies, judgements, etc) must be addressed in a very detailed credit explanation letter and appropriate supporting documentation, if applicable.
* If you aren't currently escrowing your taxes, you will need copies of paid/unpaid tax bills.
* Retirement/Social Security award letters if you are receiving that type of income.
This isn't an extensive list, but it will give you one heck of good start. You have more control than you think, if you don't believe me... I cite a legendary cartoon... G.I. Joe. "Knowing is half the battle."
28 Comments on Want your Mortgage Loan to close fast, here's a few tips.
AUG
19
2008
Jason, you are right, it today's market, this may just be the start of the list we need. Have you had your blood typed lately? What is your white count? How high is your colestrol? Funny, but getting closer to the truth.
Jason, I know that even here, we are constantly bashing our heads against the wall because of a change in what qualifies as meeting a condition. It is becoming a PIA. AJ
Jason- This is a great list! I wish all buyers agents would carry this along with them! And I wish that all loan officers would instruct their customers this way, and answer the damn phone when we call!
Jason - I'm sure you can reblog a flyer, just unsure how the scroll bar will look on a reblog. More than likely I will test it out this week, for I love this post.
Gary - I suggest getting it all together so you have one, big file. Drips and draps of this and that tend to delay things...
Susan - Thank you for always saying nice things to me;-)
Katerina - Ahhhh, the infamous answering of one's phone. I can be accused of many things in my profession, some right...some wrong, but not answering the phone and returning phone calls in a timely manner is not one of them.
Sis - For some reason, I have to put something in there for the flyer to hit Google. No worries, this one is free of charge.
Sandra - Well, try it and see how it turns out. I'm not sure how it will translate over either.
Great info. I usually have a handout that I give all clients when they sign that application telling them what they need and the faster they give it to me, the sooner we close.
Jason, very valuable information for anyone considering the purchase or refinance of a home. This would certainly assist not only the prospective buyer, but the realtor and mortage broker as well.
Nancy - I haven't utilized a standard hand-out too often, at least not consistent enough in my mind. My usual way of handling it is on a case by case basis, and outlining what I need for their particular situation. That's partially why I wrote this, as a source I can come back too as an easy reference. In essence, a time saver.
Tim & Pam - Like I said, it's not all extensive... but it gives one a nice summary. It gives me, that forever needed reminder:-)
I noticed the vflyer thing too. I wondered as to the usefulness of it. Very cool though. 90% of the time it's up to the borrower. 10% of delays are from ridiculous loan officers.
Jason, I love this. I know I get after loan officers sometimes, but I know they can only do what they can do. Sometimes our buyers are not as on top of things as we would like. I just signed up for vflyers, can I reblog this? It will be my first, but I think this is the kind of info our consumers need to know in that abyss of home financing!!
Jason, I couldn't agree more. After my current battle with borrowers who don't want to provide anything I am going to begin every initial conversation with the fact that they hold the key in most instances. Either they can make this go smooth, or hold it up. Especially in these changing times it is imperative for the borrowers to be cooperative with the lenders.
Missy - I'm loving Vflyers, myself. It's folks like you that turned me onto them in the first place. Thanks!
Gerry - I did watch Thundercats but I'm not sure if that was their slogan as well or not. Thanks for the encouraging words, let's just hope I outlive most of them;-)
Lauren - Your last sentence couldn't reign more true. Thanks for stopping by.
What you can expect is relatively simple. I hope to make these little posts informative, entertaining, timely and have a flare that allows you the reader to be able to look at the financing side of the real estate biz. And maybe, just maybe, it gives you a little peek into my soul...
Jason
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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Jason, you are right, it today's market, this may just be the start of the list we need. Have you had your blood typed lately? What is your white count? How high is your colestrol? Funny, but getting closer to the truth.