Good morning! I hope you had a fabulous weekend.
I was thinking this morning about what your lender/loan officer can and should be doing for you. Here is a list. Feel free to add to it.
1) We should be able to evaluate whether you're qualified before the process ever begins. This requires knowledge of the current lending landscape and what is needed to get you qualified now or if you need to wait.
2) The above would include a determination of value first and foremost. If you're purchasing, your real estate agent should know if the value is there based on comparable sales. If you're refinancing, it's my job to find comparable evidence that will support you getting a loan.
3) These days full documentation is needed in almost all cases. This would include your last 2 year's W-2's in all likelihood, 2 most recent pay stubs, 2 most recent bank statements (brokerage and retirement statements are also nice), your current mortgage statement if refinancing and landlord contact information if renting, your insurance contact information for the insurance binder, and any and all personal information to include full names, birthdates, and phone #'s to verify employment. You will also need to provide your social security #'s so your credit can be checked. If you're self employed, at least one year's worth of tax returns will be required to determine income. If your credit is less than ideal or there are inquiries on your credit report, be prepared to write a quick explanation of what happened. My job is to package your loan to its fullest and tell a story. Believe it or not, loans are being approved every day and there is still a human element to our business.
4) Ideally, your loan officer will collect all this information along with signed credit disclosures, etc. before proceeding on your loan. It sounds like a lot and the clock is often ticking but if it's requested I suggest you get on it.
5) Part of the application process should also include a conversation with your loan officer about what your goals are. These days most people are interested in the safety of a 15 or 30 year fixed mortgage. I can't blame you but a loan officer would be remiss if they didn't ask questions such as how long you intend to stay in your property, etc., etc. I have had several clients refinance this year into ARM's (adjustable rate mortgages) that are fixed for the first 5 ,7 or even longer periods. My point is this. Your loan officer should be getting as much information from you up front before even moving forward.
The above is a good list for you to consider. As one of my friends and competitors so eloquently stated some time back, "this is no time for rookies!" It goes without saying that your loan officer should be communicating with you throughout the process. A great loan officer should love to educate. Sometimes our business is foreign to a lot of you. If your loan officer isn't doing the above and more for you, they are doing you a serious disservice. Thanks for reading. If you have any further questions, feel free to
Comments (0)Subscribe to CommentsComment