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There are some common misconceptions floating around about there not being enough money in the bank when it comes to mortgages. This could not be further from the truth. Lenders have plenty of money. Sure, they are being more careful about who they lend it to and yes they are definitely making sure all i’s are dotted and t’s crossed. But here’s the thing: do you want to have to jump through hoops of fire or would you rather sail through the mortgage loan process smoothly?
With
our special report that shares with you the real estate industry’s
insider information on the top reasons loans go awry, you can avoid
having to go back to the drawing board over and over again and
ultimately risk losing your loan (and your dream house) in the end.
Accuracy of Information is Key
As you sign your loan application you will notice that there is a mountain of paperwork. One of the most damaging things to a loan app however is when there are discrepancies within the paperwork. As long as you can vouch for your information, provide accurate and updated data and support it with plenty of documentation – your loan application should not suffer any major delays or cancellation. This
applies to basic information such as names and aliases to employment
history to past judgments or other negative financial factors that you
need to report.
Incomplete
forms and less-than-adequate supporting documentation such as W2s or
payroll stubs are just one of reasons a loan officer will move on to the
next borrower’s paperwork. It is important not to be offended if you have to provide a lot of details. When
it comes to things like the source of your extra income, where and from
whom you received cash gifts or other sensitive information like that, a
lot of homebuyers get squeamish. In fact, borrowers should be prepared to do a lot of “explaining” through what loan officers call Letters of Explanation for things that are not crystal clear or cut and dry. And there are a lot of things that simply do not add up without an explanation at hand.
Processing Makes Perfect
Anyone that has gone through the process of applying for a mortgage knows that it takes time. Even if every single aspect of the app were perfect it would still take time. Some
delays can be avoided, all of which can be done by making sure there
are no outstanding liens on the home, providing and being able to
confirm the source for all funds used in the transaction and ensuring
all necessary repairs are done in advance.
One of the most frustrating aspects of going through a mortgage loan process is when a step adds days and days to the timeline. With
each item that needs further clarification, additional investigation or
more, more time is added and more frustration ensues. The single best way to avoid this problem is to provide as much information as possible from the start.
(Almost) Everything Can Be Fixed
By
working with the right Realty and mortgage team you can turn around
most of the issues that come up as roadblocks in the process. It takes time but it can be done. To
find out more about what may go wrong with your loan, email us and
we’ll send you a copy of our free report with the top reasons loans go
bad and how you can avoid each.
