I have heard this question so many times. “Ray, why is this coming up now, we gave you all of the financials you asked for up front”.
To first understand this, you have to look at the calendar. If you are buying a house, did your real estate agent talk through the deadlines, and ask if there were any additional needs or challenged we potentially see an underwriter asking clarification about? Odds are, no. Most real estate agents don’t call your lender when they are writing the contract to talk through the important deadlines that are there for your protection during the time you are under contract to buy a house. You would be surprised how often I receive a contract and the dates aren’t thought out on behalf of one important party to your home closing, that person is me, your lender.
Now mind you, when I get financials from clients, I am asking you for tax returns, W2s, pay stubs, bank statements, rental leases, mortgage statements and so on. I will even come back and get clarification on items prior to giving your file to my loan processor. However, if there is a trailing document you don’t return in a timely fashion, or missing items when we submit to the underwriter it can cause additional questions. This is pre-approval. From there the loan processor will verify and organize to submit to underwriting for the formal loan approval.
But keep in mind, only one person has legal authority to issue a FINAL loan approval. That person is an underwriter. So if they need to clarify something to issue final approval , they will ask. This may be an item your loan officer discussed in advance, they may ask for further clarification on. So back to the calendar, make sure you talk to your real estate agent to make sure the discussed the important deadlines with your lender, to ensure as much efficiency as possible for you.
But at the end of the day, remember, buying a home is one of the major life events that cause the most stress in your life. You will be stressed, anxious, and nervous. These emotions are natural and totally ok to feel. Just make sure that when you lender asks for follow up documents, you turn them on a dime, so they can get you closed on time. It all begins with working with the right lender, so you can trust they will guide you efficiently to the closing, so get pre-approved now with us, and when you are looking at houses you will know you are safe to buy.
All the best~
Ray Williams, Branch Manager, Summit Mortgage Denver, 303-779-0591 x101