Communication With Your Lender
One sure fire way to delay closing is not staying in communication with your lender. Lenders and underwriters are the keys to a smooth closing so it’s important that they have all the necessary financial documents from you. Lender requirements vary from company to company, but they all have one thing in common. They all want to know if you are worthy of a home mortgage loan.
Be proactive about your loan approval.
Lenders, title companies, listing agents and buyers agents are all part of the team that come together for your home buying process. Getting pre-qualified for a home loan is pretty simple. Actually getting a home mortgage loan requires extensive financial and personal information requested by your lender. Some information you will want to start gathering even BEFORE an offer is accepted would be:
- Current and past employment information
- Verification of income such as check stubs
- Bank statements
- Federal income tax returns for the past couple of years
- Any debt such as other loans and living expenses
- 401K statements
Gathering basic financial information will help you be prepared when your lender starts asking for documents.
First-time homebuyers may be a little more overwhelmed, but it’s important to understand the lender requirements.
Respond promptly to requests for more information.
Good communication with your lender is extremely important and being prepared to gather even more information if the underwriter requests it will be beneficial. The underwriter will ensure your financial profile matches your lender’s guidelines and loan criteria and he/she will ultimately make the final decision to approve or deny the loan. If the underwriter doesn’t get information showing sufficient income, your closing will be delayed. Always be available to your lender and always give them the information they request immediately if possible.
Check in with your lender constantly to make sure they have everything they need to process your loan. In addition, keep records of your conversations with your lender so you have a record of what documents were provided and when. Don’t think that just because you haven’t heard from your loan officer that you are on track for closing.
Underwriters always seem to want more information. However, they are the key to either approving or denying your loan. The important thing is to respond quickly and accurately to their requests which will reduce the length of the underwriting stage and improve your chances of being accepted.