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Loan Mechanics

It May Seem Impossible, but…

Is It Impossible to Get a Mortgage Loan? As we continue through our current series, Loan Mechanics: The Inner Workings of a Mortgage, we’ll discuss the challenges and the solutions.

The Challenges:

With the numbers of recent foreclosures, lenders are having to re-purchase defaulted loans, often for minor technicalities. Losses incurred by some companies have forced them out of business.

As a result, not only have lending rules tightened, but underwriters are also being forced to follow them to the letter and beyond.

Brick Wall
The Solutions:
Advance preparation and the right documentation will help streamline the process.

Your Money: All necessary funds must be verified, and deposits must be documented. Make copies of all checks and deposit slips.

Your Debts: Avoid delays by refraining from applying for or opening any new credit accounts.

Your Income: Expect verification through paystubs, written and verbal confirmations, tax returns, IRS transcripts, etc. All new employment or forms of variable income beyond regular wages (bonus, commission, alimony, dividends, etc.) are subject to rules of history and continuance. Do not depend on this income until we discuss its acceptability.

Your Credit: Score requirements have increased. If you’re not already, you need to be extra mindful of managing your debts. To help protect your score:

  1. Do not close old or unused accounts.
  2. Do maintain high lines and low balance ratios.
  3. Do not transfer balances to a brand new card (at least not before buying or refinancing).
  4. Do not use your extra cash to pay off debt. Sometimes, it’s better to have the cash than slightly lower balances.

Other factors can be at play, too, but the most important thing to remember is that it’s never too early to seek personalized advice. I work with mortgage loans every day, and I’m here to help you prepare so you can sail through the process when the opportunity is right.

Financing is still abundantly available. It simply goes most easily to those who plan ahead. Contact my team if you have questions or get started on your free application now.

Are You Looking for the Easy Way to Loan Approval?

As we continue through our Loan Mechanics: The Inner Workings of a Mortgage series, we’ll look at how not to go about getting a loan approval. If you’re looking for the easy way to loan approval, read the tips below.

road_to_loan_approval

The Hard Way

  1. Requests for documents and info are contested or ignored.
  2. Bank statements are missing pages, and large deposits lack explanations.
  3. Tax returns are missing some schedules.
  4. Paystubs are thrown away or not provided.
  5. Your accountant, attorney, agent, or other professional partner won’t respond to inquiries.

The Easy Way

  1. All requests are quickly and accurately fulfilled.
  2. All numbered statement pages are provided, and deposits are well documented.
  3. 1040s are complete with all schedules and worksheets.
  4. Paystubs are kept available and updated.
  5. Your associated professionals communicate when needed.

With your help, we’ll get you home as quickly and easily as possible.  Contact my team if you have any questions!