April 12th, 2017 6:39 AM by Jackie A. Graves, President
Getting a mortgage is every bit as arduous
as you might think. While lax mortgage lending standards helped
pave the path to the
financial crisis a few years ago the pendulum has swung so far the other way in
2017 that getting as simple as a 30-year fixed rate loan is incredibly complex
given the amount of paperwork and disclosures required.
what you should expect if you plan to buy a home in 2017 or beyond.
means to you, as a homebuyer, is to trust your lender and expect the
mortgage process, in terms of the paperwork, to be thorough. The mortgage
process could be compared to an airplane ride. No ride, destination, flight
attendant, captain or any aspect of each individual flight is the same. Every
flight is different.
Every loan is different as well. If you have ever been on
a flight and experienced turbulence, that turbulence is the equivalent of a
lender coming back and asking you for documentation, even though you already
provided it at the beginning. Asking you for documentation a handful of times
good lender can do a thorough job examining your financials before you go house hunting. This will
ensure you can get
a loan at a good rate while
intercepting future issues that may arise. Before you go to a lender for
pre-approval, you’ll want to check your credit scores to see if there are any
issues or errors weighing down your scores that you can quickly fix. You can
get your two free credit scores on
not on your side when purchasing a home for two reasons: You might have a fee
for every day you don’t close on time, which could be as much as $100 per day.
If you close three days late, that’s $300 in the seller’s pocket. The other
reason is your interest rate lock. If you don’t close on time, it might cost
you as little as $500 or as much as a few thousand to extend your rate lock
commitment to the investor.
Time is also not on your side because there is an
expectation your lender and Realtor have that you to provide documentation to them within
24 hours. This means your answer to the request made Monday asking you for a
paystub is expected by Tuesday, no later than Wednesday. Delays in the process
can be costly and stressful, especially if everyone is counting on the
transaction to close by a certain day and it doesn’t due to failure to receive
documentation in a timely manner.
two things you can do for yourself when purchasing a home are one, get the
needed documentation to your professional in a timely manner, and two, expect
to be on call for each day of your 30-day purchase contract. Going into the
transaction with those expectations up front will help ensure your transaction
closes on time.
By Scott Sheldon - To
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