Everyday I have to deal with new guideline changes, usually just one more hurdle to jump in order to help someone get a mortgage. The hardest thing for me is when I have to ask a client to provide a document and then I don’t get the document for another 3-5 days. Now on a clients side they feel they have already provided enough documentation in the first visit in order for them to qualify. But what they don’t usually realize is I am only the first step of the loan process, after me it goes to the processor who reviews all the documents, then the file goes to the underwriter. At this point the underwriter ALWAYS asks for more documentation. Then I become the middle man, trying to make sure we get all that the underwriter needs.
This is were the PERFECT LOAN FILE makes all the difference. It is no longer about who has the best credit score anymore, or if you have sufficient funds in the bank for a down payment. It is now more about can you prove your financial status on paper. Can you document that down payment, can you prove that you can pay this mortgage over 15-30 years? That is what underwriters want to know.
When your lender asks for a document, no matter how silly it may seem or how it may feel like you have been over documented, well sorry to say, you just need to do it! Remember when your parents would say “Because I said so” well this is the mentality you need to go into when applying for a loan. So when your lender asks you, you say “ok” and get it to them as soon as possible. You can be your own worst enemy in the loan process if you take too long or never provide the needed documents. Just trust that you have chosen this lender for a reason, they are on YOUR side and they are working to help you get this loan, they are not out to torture you or make this more difficult than it already is. They are your own personal boxer in your corner!
The article I read from Forbes.com “The Perfect Loan File” is the best article I’ve read in a long time. It lays out the loan process and explains the “because I said so” mentality needed. It explains why we are in this “over documentation” loan process and how because of the loose guidelines in the past have put us into a tighter, under the microscope underwriting. I highly recommend for you to read.
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If you have any questions please contact me. I’m always available to help.
~Ray Williams
Branch Manager
Summit Home Mortgage
303-779-0591 ext. 101
