Good God has it been a long time since I was an entry level 'Tiger' Cub attending meetings in the church basement down at 15th and Chew in Allentown. Other than learning some pretty neat stuff as I completed the assignments from Tiger to Wolf to Bear and finally Webelos. I remember the fun my friends and I had doing all sorts of things that helped us grow and contribute to our community. Yeah, we were boys so there was allot of yelling, rough housing and sweating too! We drove our Den Mother Mrs. Crownover nuts! Another story....another time. Over all these years since, the Scout Motto has always stuck in my head. Sure, sometimes I'll forget it and enter the occasional situation, oh....how would you say......by the seat of my pants.....winging it......dealing with it as it pops up.........NEVER are the results as good as if I had simply followed the Scouts Motto. 2 little words make all the difference in the world:
Be Prepared
So you're considering either buying a new home or refinancing your existing home. Your knees are knocking as you read the horror stories on professional web sites like activerain, or social web sites like lets say Facebook. It's on the nightly news on the tube, it's in every newspaper and magazine you read. It's as hard as it's ever been to get financing. Calm down a little bit please. I'll let you in on a secret, but you have to promise to use me as your loan officer. Let me whisper in your ear, before you make application for you mortgage........
Be Prepared
Obtaining a Mortgage isn't really all that difficult if you've taken my advise. 99% of the issues delaying a loan closing can be easily avoided if you follow the Scouts Motto prior to meeting with your Loan Officer. See, a mortgage application (called a 1003) reads a tad like a book. In other words, it unfolds the story of what you are trying to do, who you are, your income source for repayment and what assets you have available to get the transaction completed. Hopefully your Loan Officer has helped in your preparation of the documents you'll need to gather to ensure the story told on your 1003 has a happy ending. If not, here's a few items that might help you too.
Be Prepared
For your employment, you'll need 2 years of history, preferably with the same company. You might be shy of 2 years with the company you're with, yet have 2 years in the same field. With the proper supporting documentation you'll likely be OK. A written explanation of the reason for employer change that will be supported when the verifications of your employment are done will go a long way to helping your loan process go smoothly. You'll need to supply the last 2 years of W-2's along with pay stubs covering the last month (weekly last 4, bi-weekly last two, etc.). Should you be self employed, you'll need 2+ years of self employment with personal and / or corporate tax returns covering those 2 years. A signed year to date P & L is another likely requirement. If you have rental properties, annuity income, disability income, etc., documents supporting the income, leases, award letters, etc. will be needed. Proof of receipt of the income can usually be found on your bank statement direct deposits. If not, photo copy the next check you receive for verification.
Be Prepared
The assets you list on your application including those to be used to complete your transaction must all be verified. Recent statements covering 2 months will be requested with your loan application. Any larger than normal deposits will need to be explained and documented. Please don't think that you'll use funds from a credit card advance to close your loan. That's not going to work and may deal your closing a crushing blow. If you are using gift money from a relative prepare them to supply verification of ability to do so along with a letter confirming that the gift is not a loan. You'll also need to show that money going into your account. Once you have entered into an agreement of sale, postpone other larger purchase items until after your loan closes. I tell all my clients to leave the bank accounts alone and spend little if any money. I always recommend a steady diet of Spam and Kraft Mac&Cheese until the loan closes. That usually gets a chuckle, or a questioning look depending on ones familiarity with the lovely meat product known as Spam.
Be Prepared
Understand that when additional information is requested during the processing and underwriting of your transaction that time is of the essence. The speed with which you supply documentation may have a very large impact on how timely your closing occurs. If we did our job up front, there shouldn't be anything more we need to supply. However, if a request is made we need to respond as quickly as is possible.
Be Prepared
Real Estate financing can be overwhelming to many people mostly because a mortgage is something most of us only do a few times in our lives. Nobody can be an expert at something doing it once every 15 years can they? That's why it's important to select an experienced, knowledgeable, involved and informative Loan Officer to work for you. A real pro will not only tell you what is needed, but explain why and the impact that information has on your transaction. A real pro will explain every fee item you'll find on the Good Faith Estimate so you'll know exactly what you're paying for and why you're paying it. A real pro will keep you informed every step of the way.
Be Prepared
If you need any help selecting a Loan Officer whom you'll feel comfortable with, I have a short list of candidates I could provide you with. With the right loan officer and the proper supporting documentation with your application, you're prepared! You'll be closing on time without any angst what so ever. Don't forget to invite me to the house warming! I love those parties!!!!
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