Thea Simolari The Mortgage Network on The Dos and Don'ts of Mortgages
This week I spend about 10 minutes on a conference call with Thea Simolari of The Mortgage Network discussing the DOs and Dont's of Applying for a Mortgage. Over the course of my working years, it never ceases to amaze me at what new fangled things the banks will require a borrower to come to the table with for a closing on a mortgage.
The teleconference is at the bottom of this article.
I recently was tied up on a property in Hyde Park due to the fact that the buyer needed to obtain college transcripts in order to close the loan with the bank.
Thea and I do regularly host webinars on Home Buying in Boston. If you would like to be notified of our home buying seminars, you can register below:
Don't Make Any Large Purchases
Many people will go crazy when purchasing a home. They will want to run out and charge up a ton of furniture to furnisg their new diggs. Caveat Emptor. You do not want to make any large purchases with credit while going through a mortgage application process. Large purchases also include vehicle leases and purchases. You want to wait until after your mortgage loan process is closed and you are now living in your new home.
Mattress Money and Your Bank
Additionally, if you are planning to make any large deposits into your bank accounts you will need to have some documentation on where the deposits are coming from. The mortgage underwriting process will uncover any large deposits that have been made. They may question where the deposits came from.
Uncle Guido Wants to Give You Money?
Another issue for a lot of home buyers is the topic of receiving a deposit as a gift. Receiving the gift is fine, in fact, if you don't want to receive the gift I am happy to give you my bank account deposit information. No really, the issue is that you need to be able to document the gift. What this means is that somestimes you will be asked to have the donor of the gift to write what is called a gift letter stating that they are gifting you the money for the deposit on a home and their relationship to you.
Download the Checklist for Applying for A Mortgage
It may be best to be in the know so that you do not make any rookie mistakes when undertaking your home purchase. You can get the report below:
Plan to Go Under the Microscope
As you can see from the three things I have written about the mortgage process is pretty invasive and you will come under a microscope.
My advice to you is that if you are planning to make a purchase, you get the advice of a seasoned mortgage loan officer. You need to get the benefit of somone with experience in make loans of all different kinds in all different kinds of mortgage climates and economic times. There are nuances in every situation. You need to rely on the mortgage professional's expertise to close the loan. This is crititical.
Getting a Mortgage Online
Sure you go online and apply online, but every market is different, I would not put my loan into the hands of web site when market conditions in the local area play a pivotal role in lending. Choose to work with a local lender who knows the region and all of the variables.
Why Shopping Local Matters
In addition to that, if you are shop local kind of person then you will see the importance of using a local mortgage professional. When you make a loan application, there are a bunch of events that created as a result of a mortgage being originated.
A few of these events are:
1. underwriting - this is the due diligence done by the bank on you, your personal finances and the condo or home you are looking to buy. There are local people employed who do this work.
2. Title Search - each property has to have a title cleared before it can be conveyed. This requires a title agent to look up all the information and history of ownership on the property. This is a local person.
3. Mortgage Plot Plan - This is a drawing that confirms boundaries of the land. This is a person who goes to the property and develops the plan for the bank.
4. Appraisal - A person goes to the property to conduct an interior and exterior inspection and develops a market analysis for the bank to ensure that they are making an informed decision about the property.
As you can see from the short example above money is being spent local. Why divert from our local economy by choosing an online out of state lender. That's just not good for our local future.
Boots on the Ground or High as Kite in the Fluffy Cloud
The list goes on and on...there are about 10 more events that are all coordinated by the mortgage lender. It's more complicated than you think. This is why I like choosing someone who is local as opposed to Internet lender. When the stuff hits the fan it's nice to know there are boots on the ground instead of on the fluffy cloud.
Thea Simolari can be reached at www.TheaSimolari.com or via her phone at 617.699.7692
I can be reached @ 617.980.9025 or via email @ mike@mmahoney.com
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