The perception the general public has regarding loan qualifying has been a bit skewed in the past few years. Securing a mortgage approval and meeting the underwriting guidelines is not the main difficulty for borrowers these days. The real challenge is satisfying all the tedious documentation requirements for whatever loan program they are qualifying for.
Yes it still matters if you have the income, credit and assets to either purchase or refinance your home. However what really matters most these days is if you can “prove” or “document” all of your qualifications. Frustration happens when documentation is requested and the borrower either misinterprets or substitutes what is asked for and it seems they’re being asked for the same thing over and over again. Another source of exasperation is when the correct documentation is submitted but that documentation creates more questions which need to be answered with, you guessed it, more documentation. One way to look at the current state of loan processing is that banks are no longer looking for the “perfect loan” but the “perfect loan file”.
Here is some advice:
Get organized and be prepared for the mortgage process. Be aware that copies of your tax returns, bank statements and pay check stubs are only the beginning of the paperwork you may need. If you’re not sure what documentation is required then call your mortgage professional and get pre-qualified or better yet pre-approved for your loan. This will lessen your frustration by getting the loan portion of your transaction secured before you begin looking for a home.
Be patient, accept the perceived redundancy and respond quickly when asked for paperwork. Some borrowers are the authors of their own delays by responding with a lack of urgency when it comes to submission of needed documents. Not to say that all delays are caused by the borrower but remember, we are operating under a “hurry up and wait” process. Many times the mortgage company may ask that you quickly submit some documentation but then they have to wait while the documentation gets verified by whatever outside entity is responsible. See our Mortgage Timeline video which explains in more detail what happens during the loan process.
Communicate regularly with your loan officer. Your LO should be communicating with you at least once a week or more regarding your loan. Take that call when you can or make sure you return the call when it’s convenient. Email and text messages are good alternatives to get the message across but not always as reliable or readily understood as a conversation. Just as there’s an expectation on your part to be proactive there’s also an expectation for the LO to communicate on a regular basis. The mortgage and real estate transaction process is much more complicated now than in the past. It takes several different companies and individuals to bring your deal to a successful close. Communication is key.
At Choice Lending Corp our Loan Officers are highly trained personable professionals.
Call us today to get pre-qualified and see why we are the “Right Choice Every Time”.