We got you to the first checkpoint, Preapproved, in our previous post.
Now we tackle the second checkpoint on your way to home ownership: In contract.
You’ve found the perfect home and had your offer accepted by the seller. Congratulations! Now the real work begins.
The mortgage business has certainly seen a lot of changes over the years and will continue to see more in the future. One of the biggest changes we have seen since the 2008 mortgage meltdown is lenders making it harder than it needs to be (in our humble opinion) to get a loan. Prior to 2008, lending was fast and loose, with almost everyone qualifying for a loan. In 2008 the pendulum swung to the opposite end of the spectrum, where you almost have to prove you don’t need the money in order to get a loan. Lenders are now trying to find the happy medium.
The good news for you is that interest rates are at historically low levels, making it worth jumping through a few more hoops than buyers had to in times past.
We are committed to doing a great job for you and will do our absolute best to get your loan closed and your family moved into your first home just as quickly as possible.
Closing loans is a lot like a relay race, with us running the last leg. There are several other members on the relay team with us (you, your agent, the listing agent, escrow officer, lender, appraiser, and so on).
We will do most of the heavy lifting for you and will always go the extra mile when possible. In order for us to do a great job and run a great race, we are going to need some help from you. We will always be proactive in calling you with exactly what we need you to do. We just ask that you pretty please return our calls and do your best to quickly get us what we need so that we can all run a great race and get you into your new home just as soon as possible.
We do our very best to request all the items needed from you prior to submitting the loan for underwriting approval. We try to balance this out for you and not submit too much information, which can cause delays in closing. Inevitably we will need items from you to get our final loan approval.
Here’s what we typically need from you to get your loan submitted for processing and initial underwriting:
- Updated pay stubs if the ones we already have in your file are more than thirty days old
- Updated bank statements, all pages even if blank, from the account you are using for your earnest money and cash to close
- Legible copy of driver’s license(s)
- Name of your homeowner’s insurance agent (we have a great referral if you need one)
- Date of your home inspection—this is only for the purpose of ordering your appraisal in a timely manner. We do not require a copy of the home inspection.
- DD-214 or Statement of Service—for VA loans
Next, we will tackle Checkpoints 3 & 4 – Contract received & Sent to processing/underwriting.