Become A 5 Star Mortgage Applicant
No doubt you’ve heard the horror stories about how hard it can be to obtain a mortgage loan approval. The reality is that things have tightened up yet the process can still be easy for those that still take a few key steps to be properly preparedand informed.
THE PERFECT LOAN APPLICANT WILL HAVE A PERFECTLY EASY LOAN APPROVAL PROCESS:
Has all of their funds to close in one account without any recent large deposits
Even small deposits and transfers to your account may sometimes have to be sourced. Underwriters must prove that this money is not borrowed and that it can be hard unless you save checks, stubs, deposit slips and make copies of everything. It’s a lot less work if you simply use one account that is dedicated to your transaction and put all of your needed funds into that account at least 2 months prior to your transaction.
Saves their pay stubs and other financial documentation
Pay statements are one of the ways that income is verified and monitored. Currently, underwriters often want these updated within 30 days of the closing so get or get in the habit of hanging onto them and have them ready to transmit when requested. The same goes for all other financial documentation from bank to retirement statements, tax returns, fund transfers, asset sales, etc.
Doesn’t change jobs or switch from salary to commissions
It’s not always enough to simply have income, ideally, it’s best when it’s been received from the same employer for two years or more and it’s consistent or growing. We understand that things can change, yet, voluntary moves during the mortgage process can often equal difficulty and at the least, will make verifications more complex and time consuming.
Save all pages of their bank statements
We know that banks love to include blank pages or advertisements in their statements. The problem is when they put a number on this page such as “1 of 8″ or “5 of 5″ — you may know their is nothing there but how will an underwriter if she or he can’t see the page? So, save even these and include them when you provide your statements.
Doesn’t apply for any new credit cards, car loans, furniture financing, etc
While purchasing a new home often goes hand in hand with buying furniture, lawn mowers or gs griils, that 10% discount the salesman wants to grant you by opening a new charge card can not only cost you far more money than you save; in extreme cases, it can even cost you your loan approval. If you need more detail, just ask but to be the ideal borrower, just don’t do it. Save your purchases until after close and you may be far happier.
This is the most important thing of all
And that is to simply accept the process for what it is regardless of how crazy it may seem.
As you can see, things have tightened up yet it’s really more a matter of strict adherence to the guidelines that have always been the norm vs new all around requirements. Most importantly, it’s very easy to work within these rules if you simply know what to expect and plan ahead accordingly.
There are actually some good reasons behind the rules and others admittedly don’t make sense on the surface but still must be complied with. Hence, the perfect applicant is one that doesn’t try to fight the system, rather he/she goes along willingly and cooperatively while focusing not on the process but the end result instead. Reach out early, before you’ve found a home and we’ll get you set up to sail through the process seamlessly once you do.
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Originally published at www.kcgroupdenver.com