Mortgage Loans: The Art of Perfection

I’m a mortgage guy who rolls with the punches. You have to be ready for anything in this business, and the only way to effectively accomplish this is by anticipating that every challenge possible is going to impact your client and their ability to get their loan through the mortgage machine. 

So how do we get loans to the finish line? By making borrowers understand that delving into their financial lives and requiring all manner of documentation is not just to make them jump through hoops. Every single piece of paper serves a specific purpose. One of the primary objectives is to block off any possible event that could signify an inability to pay the mortgage loan. I therefore ask for specific details and supporting documentation as I truly need to have them, not because more paper is better….but because the precise information will support a particular aspect of the loan file. There is a method to the madness!

We need to be prepared with whatever the underwriter is going to want whenever it is requested. Period. And this goes beyond the qualification process. I’m talking about anything that could be viewed as a potential obstacle – from counter deposits to your bank account to job changes; I am afraid that the underwriter pretty much considers you guilty until proven innocent. 

These conditions of disclosure are even prevalent in the short sale world on the seller’s side of the transaction. Lenders today are asking sellers for monthly updated financials. And again, it really is all justifiable. The purpose is not to give anyone a hard time. It’s because lenders want to do everything possible to avoid defaults and loan buybacks so as not to fuel a future market littered with foreclosures. 

So if you are planning on borrowing money to buy your next home, get your head in the game -- this is just how it is. In a recent Forbes article entitled “The Perfect Loan File” it states: “As the process, requirements, and guidelines are the same for everybody, your mindset is the game-changer.” At the end of the day, this is the State of the Union, baby! You’re in or you’re out.