Home Loan Approval Process in 2013
Ever wonder what it takes to get approved for any type of home loan these days? More than you might expect besides just good credit and income. So pull up a chair….
In an ever changing mortgage industry and within the home loan approval process there are quite a few steps that take place. Frankly, there is a lot that goes on “behind the scenes” unbeknownst to the borrower(s) most of the time. It is nothing that anyone can get excited about in the least. However, the results are greatly desired – especially in today’s market where interest rates are at an all-time low! So what does it take to assure that loan approval is met with complete assurance? Here are some condensed items to consider as a borrower when applying for a loan:
Accuracy: Often times we as loan consultants like to use the parallel of being somewhat like your financial doctor. We cannot prescribe you a remedy if we do not know the symptoms. So in the financial world the more you can divulge to us the better. Once we know exactly what your financial scenario is and what you are looking to accomplish short or long term, then we can properly diagnose, prescribe and set you up with the proper loan program. Occasionally a borrower will try to hide some items in hopes that it will not show up. Unfortunately, “the devil’s in the details” as they say. We will find out most anything through credit reports, job verifications, bank statements and anything else submitted throughout the process. So just be an open book. Everything is completely confidential.
Speed: This can be so important and crucial to the process as well. A lot of times we all have a life, we get busy with work and family can consume our time. Bottom line – we get distracted. Remember when we were kids and our parents would tell us to do something and instead of just following directions we’d spend more time in the long run trying to get around it rather than just doing what they said? Well borrowers can follow this same tactic a lot of the time. This can really hinder our process of streamlining in a sense the whole way of getting your loan done as quickly as possible. Always keep in mind, especially in today’s scrutiny of loan files, that when you receive that list of Items Needed for documentation that you follow it to a T. Sometimes borrowers look at the list as suggestions rather than requests and then try and tweak or short cut the process. There is a method to our madness. We have done so many loans that we know what is needed. The more back and forth a borrower makes us do, the more time it takes us to get the loan registered which can be crucial to locking your interest rate. Rates by the way can change up or down possibly three times a day. Having a loan in queue and registered leaves a borrower in an excellent position to get the rate they desire when it is time to lock it. Failure to have a file ready with all the back and forth can leave a borrower vulnerable and missing the rate because the market just happens to fluxuate in an upward trend. The ol Jerry Maguire line always comes to mind, “Help Me, Help You…” This couldn’t be more true. Help us, help you put you in a better position to get you what you ultimately want and need.
Flexibility: Last but certainly not least is the fact that a borrower must have a level of mental flexibility. Once all of the borrower’s documentation is in, now the processor can get to work in making sure everything that was input into the system is accurate and complete. Some borrowers can spend a lot of time gathering what we need (depending on how organized he/she is) and with work and everything else going on, it can be frustrating to them. But now we need our time to review the snapshot of the file and maybe ask some more questions or get further documentation and explanation because we know the underwriter will ask for it. It absolutely helps if a borrower does not set mental expectation of when a loan might close or that they won’t have to make another payment on their current loan because the new loan will be immediately in effect. These false expectations can in fact further frustration. Instead, we like to under promise and over deliver.
Bottom Line: No matter the borrower’s excellent, fair, good to poor financial scenario, when we’re essentially borrowing a large amount of money, we are at the mercy of the underwriter and their investors. So until they are completely satisfied with the documented paper trail we must be prepared to provide them with anything they request. At Green House Mortgage our closing ratio is very high! And it’s because we just happen to know a thing or two about getting these done efficiently for you. Hope this helps you understand a little more about what to expect when applying for a residential home loan here in Tampa, FL.
Green House Mortgage is a full service home loan origination entity in Tampa, FL and servicing the state throughout. If you have any questions or concerns with the article or simply need mortgage advice please call 813-732-3155 or email us at info@ghmortgage.com. We are dedicated to giving you the best mortgage consultation available. Green House Mortgage – It Pays to Go Green!
