Gather Your Paperwork Ahead of Time No matter what firm you are working with, experts say the No.1 way to ensure a more efficient process is to gather all the necessary paperwork before an initial meeting.
According to many mortgage operations, you’ll need pay stubs covering at least four weeks, one real bank statement covering 30 days (a printed online snapshot does not qualify), a homeowner’s insurance declaration page, and any other pertinent financial information like a divorce decree if you are no longer married.
“The more the client provides up front the faster the loan will go through approval.” Any time there’s insufficient information the underwriter has to recommission the file, which creates a merry go round that can delay the process by weeks..
Be Up Front About Assets and Finances Excluding any information will also result in an unnecessary delay in the mortgage process. For example, some customers forget to tell the mortgage broker they have a second home, or about past due balances on loans or credit cards.
In the past, assets like an investment property may have gone unnoticed, but lenders are more prudent about checking public records nowadays, and that they will discover all financial information on a client—good or bad—before issuing a loan or modification.
Don’t Change Your Financial Situation Once you are in the approval process, don’t make any changes that will significantly alter your finances, avoid making big deposits into your bank account, taking out a new credit card or loan or charging up your existing credit cards, be upfront and discuss with your loan officer any employment changes.
If you do make a large deposit into your bank account or receive any requests for additional information, get the necessary documents to the lender as quickly as possible. “Don’t be your own worst enemy,”.“If there’s additional information that you don’t understand don’t guess, call your lender.” Sending something wrong or inaccurate will only drag out the process.
Be There for the Appraiser The appraisal process saps up the most time, but it is also the most important step because it will determine the value of your home and whether you will get the mortgage or refinancing. It could take weeks to get an appraiser out to your home, so mortgage experts say to schedule the meeting immediately and be flexible. “The appraiser’s inability to reach the homeowner to make an appointment has proven to be a major cause for lengthy mortgage processing,”. byDonna Fuscaldo Published May 02, 2012 FOXBusiness
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