Why Do I Need to Give My Lender That Info?

By
Real Estate Agent with Hickory Real Estate Group

We talk about tightening lending standards all the time these days.  How tough the banks are to deal with and how we're always waiting to the last minute before we know, for sure, that a contract is actually closing.

A recent Forbles article, The Perfect Loan File, is a must read if you are considering getting a new loan or refinance, or if you are a real estate agent or loan processor.  It's not always that the lenders are that difficult, but rather that the borrowers are.

To summarize the article, the lenders these days are asking for FULL
DISCLOSURE
from potential borrowers.  They want their full work history, income, available cash, etc.  In a lot of situations, the real reason that the loan process is delayed or extended is because the borrower, whether knowingly or not, has not given all the requested paperwork to the lender for review.

As the writer of The Perfect Loan File says, when the lender asks for something and you are wanting to know why they need it, just stick with what our parents always said, "Because I said so."  Because bottomline, they are going to need it if you want to get the loan.

As real estate agents and loan officers, I think we need to do a better job of explaining what is expected from the buyer/borrower in the loan process upfront.  I think a lot of the borrower's reluctance or delay in getting the needed info could be avoided if we, as servicers, make the borrower aware of what will be needed and when.

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__________________________________________

Hickory Home SearchForeclosure Hunter

 

Roger Johnson is a Realtor with CENTURY 21 American Homes in Hickory, NC.

 

I service the Catawba and surrounding counties, and the Hickory, Newton, Conover, Taylorsville, Claremont, Statesville and Charlotte, NC real estate markets.

Visit us on the web at: www.HickoryNCHomes.com

You can contact me via Email or give me a call at 828-381-9245 or 828-568-2121 ext 310

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Rainer
284,418
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Roger -- as licensed loan officers, we should be able to give the our borrowers a better expalanation than "because I said so."  However, sometimes people do not want to listen to the explanation, and some loan officers are too lazy/busy to fully explain the reasons behind the request.

Jun 06, 2012 03:37 AM #1
Rainmaker
242,038
Roger Johnson
Hickory Real Estate Group - Hickory, NC
Realtor - Hickory NC Real Estate

Steven, if you read the article, The Perfect Loan File, it goes into detail on what is needed.  As you said, some don't want to listen, and that's where it often breaks down.  Instead of getting the lender the complete bank statement, for example, they only turn in 5 of 6 pages or just hand in the summary.  Then what we get is "why do they need the whole thing, I gave them the summary?"  Well, because they do.  It is that simple

Jun 06, 2012 03:43 AM #2
Ambassador
1,154,678
Bryan Robertson
Los Altos, CA

I have a situation right now where the borrower has taken forever to send in the requested details and it will end up delaying COE by several days - at a minimum.  It's been very frustrating and they just don't understand why lenders want all the information.

Jun 06, 2012 05:38 AM #3
Rainmaker
647,093
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

I give my clients a list of documents and tell them if it is not submitted it will likely delay the closing.  Last year I had a client that took 34 days to get me the supporting documents, and then wanted me to close the deal by that Friday.  It just doesn't work that way.

Jun 06, 2012 11:15 AM #4
Rainmaker
242,038
Roger Johnson
Hickory Real Estate Group - Hickory, NC
Realtor - Hickory NC Real Estate

Bryan, now you can send them this post and see if it helps! :)

No, it doesn't, Kathy.  After reading the mentioned article, I started writing up an outline that I will give to all buyers in the future so they will know what "everything" really means when getting a loan.

Jun 07, 2012 10:29 AM #5
Ambassador
1,470,975
Toni Weidman
Sailwinds Realty - Trinity, FL
20+ Years Selling Homes in New Port Richey, FL

I tell my clients if they want the home; just do whatever the lender wants you to do. Arguing will only delay the process and you can lose the home of your dreams.

Dec 11, 2012 11:57 PM #6
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Roger Johnson

Realtor - Hickory NC Real Estate
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