I had one of the worst experiences of my career as a loan officer last month. I had been helping a first time home buyer purchase a short sale home for the past month. Everything had gone smoothly as the borrowers were very solid with good credit, a large down payment, and a stable job. The closing went smoothly and everybody was happy.
The day after closing, I get a call from the funder expecting the good news that the loan had funded and the title company could record. Instead, I receive the dreaded news that the funder did a final verification of employment for the main borrower and his employer said that he had resigned the same day as the closing.
"What?!! Are you kidding me?!!"were the first things that came out of my mouth. You can imagine my disbelief. The result was that the loan did not fund and it won't until the borrower can provide 30 days worth of pay stubs from his new job.
You can imagine how much heartburn this caused everybody involved in the transaction and the phone calls that I had to make is not something that I ever want to do again. For this reason I have decided to make a "DO" and "DO NOT" list for my clients at the initial loan application. Because whether I like it or not, it's my fault that I didn't tell my clients not to make such a major change until the loan funded and recorded.
The Borrower "DO" list for a smooth loan process
- DO provide all documentation in a timely manner.
- DO provide all pages of bank statements, even if pg. 4 has nothing on it.
- DO keep a copy of all pay stubs and bank statements received before closing
- DO keep a paper trail of large deposits in your bank account
- DO file your 2010 tax returns on time
- DO continue working full time
The Borrower "DO NOT" list for a smooth loan process
- DO NOT quit your job before the loan closes, funds, and records!!!
- DO NOT make any large purchases (especially not on credit).
- DO NOT make any large cash deposits into your bank accounts.
- DO NOTmake any large deposits without keeping a paper trail.
- DO NOT transfer money from one account to another without asking your loan officer first.
- DO NOT be late on any debt obligations or rent payments for that matter.
- DO NOT make any large financial decisions without consulting with your loan officer
- DO NOT black out account #'s or anything else on your bank account statements
I will be adding to this list as I think about it some more and I hope that I can get some feedback from the Active Rain community. What are some other things that borrowers should or should not do during the loan process?
Comments(2)