I asked Andrew Killion who works for NeMoves Mortgage LLC to write a few Mortgage tips to help make a smoother transaction. Here are a few helpful tips to consider if you are looking into obtaining a mortgage in the near future.
Helpful Tips for a Smooth Mortgage Experience
By Andrew Killion NMLS # 210621
In today’s mortgage environment; time is money. An applicant who is unprepared for mortgage application may waste valuable time during the entire process and may end up shelling out more money at the closing table as a result. Loan applications today have to meet much more criteria and guidelines during the underwriting process than in years past, when incomplete loan applications and lax underwriting policies were the norm. Mortgage applications today need to be spotless and there are several things a prospective borrower can do in the very beginning to ensure a complete mortgage application and stress-free closing experience.
- Gather Your Financial Documents Early
Although every mortgage borrower is different, the documentation requested by loan officers and underwriters are usually standard. They will almost always want to see a few paystubs, 2 years W2’s and all of your bank statements. You can save time by gathering this information up before your loan officer requests it. Most of this information can be found on the internet, so just knowing where to find it will save valuable time in the end.
A mortgage application (also known as a 1003) is a 3.5 page, legal sized document that, when completed, will offer a full financial profile for the applicant. Information about a borrower’s employment, career history, income, home ownership, even their race can be found on a completed 1003. If any information is left out or incomplete, that information is going to be sought after down the road and could stall the approval of the loan. Don’t leave out information that may be considered negative. For example, if a borrower was unemployed at some point in the previous 2 years, that information needs to be provided.
Most real estate transactions take somewhere between 30 and 90 days to complete and a closing date is decided upon in the very beginning when an offer on a property is accepted. In some cases, the seller’s or buyer’s of the property need to close on specific date that is within a 30 day period, which puts more pressure on everyone involved to have the mortgage ready to close in the shorter time span. It’s better to choose a closing date that is further away on the calendar. This will allow more time for a borrower to have their mortgage ready to close and ensure a stress-free transaction. Longer rate locks can also be executed at the beginning of the process, and should be desired. It will cost more in the end to extend the rate lock expiration if a mortgage file is not ready to close on time.
- Don’t Sit on the Paperwork
As soon as the home buyer has an accepted offer and a closing date has been selected, the clock has started ticking for the transaction to be finalized. The initial mortgage paperwork and 1003 application needs to be filled out and returned to the mortgage company in a timely manner. A home buyer can lose valuable time by setting it aside instead of stressing a quick turnaround time. Complete the paperwork as soon as it is received and return it to the mortgage company the following day. That way the mortgage file will be reviewed faster, thus shortening the entire process.
Andrew can be reached at…. andrew.killion@nemoves.com
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