Keys To A Smooth Loan Process
1
Credit inquiries for the past 6 months will show on your credit report and you will have to explain them all. If you are applying for a loan, DO NOT ADD anything to your credit. Make your purchases after closing. A new policy has lender’s do a “soft pull” of your credit just before closing to verify that nothing has changed.
2
Bank statements are always an issue! A bank statement needs to be official. The bank name, your name, FULL account number and a 30 day history need to show. A transaction history from your online banking is not sufficient. Also, any large deposits on the statement must be verifiable. Cash is no good in the mortgage world. Have a clean 30 day history and things will go much smoother.
3
Your taxes must be filed! Your lender will pull your tax transcripts from the IRS and submit them with your file. There isn’t a mortgage lender out there that doesn’t require tax transcripts.
4
Do you have a loss or any unreimbursed expenses on your taxes? If you do, they will have to be subtracted from your income. This can cause complications and delays with your loan qualification.
5
Pay stubs are sometimes problematic. Your pay stubs must be the most recent and include your employer/company name, your name and year-to-date income. Your lender may need updated stubs during the loan process. Be sure to maintain your hours during this process as a reduction in hours will result in a recalculation of income.
6
Gift Funds are great! However, if someone is giving you a gift for your down payment, have them keep the funds until closing. It is much easier to have them make the check/wire directly to the title company than provide the documentation required to explain how the money appeared in your account.
7
Other considerations to discuss with your loan officer:
- Are you considering a change in employment?
- Do you have a business on the side?
- Do you pay child support, alimony, or have a garnishment to your wages?
- Are there any issues that could cause a problem with your loan?
