THE OPPORTUNITY IS RIGHT TO BUY OR REFINANCE WITH RATES LOWER THAN THEY HAVE BEEN IN YEARS.
There’s more to choosing your Lender than interest rates…
Choosing a lender for your mortgage loan can be stressful experience. There are numerous factors to consider. The most common way a mortgage lender is chosen is by comparing interest rates and closing costs. While these items are very important, most people forget that service is equally or more important. The term service is often over-used and nebulous. In the mortgage industry, service represents certain standards that I would demand for my clients. I will recommend several mortgage lenders that have these qualifications. These standards are such things as competency, reputation, responsiveness and knowledge. The lender will consult with you about the best product/program for your individual needs, expedite the process and make it as enjoyable for you as possible. The mortgage lenders I will recommend will also have current market services such as in-house underwriting, quick loan approval, and a wide selection of programs. Consistent communication is also a standard that is expected. Obviously, it is important for the loan officer to provide this quality service so that we can work together to make this a “WOW” experience for you and so that you will then feel compelled to recommend your friends and family members to me for “WOW” service.
As you begin the qualifications process for a new home there are a few things you should know.
NO LARGE CREDIT PURCHASES –
First of all, you should not make any large purchases on credit during the process – don’t buy a new car or boat or snowmobile or charge a house full of furniture to your credit cards. After you close on your new home you may make any purchase you feel fit into the budget, but if you do it during your mortgage process, it may prevent your qualifying for the home you want.
KEEP YOUR JOB –
If you are considering a career change – please wait until after the closing to make the switch. If you are changing jobs in the same field for more money, consult your loan officer prior to committing to the change to be sure it will not adversely affect your loan.
DON’T SEND FOR ANY NEW CREDIT CARDS –
Or do anything that might cause someone to run a credit report on you. In todays mortgage market. Many lenders will give you a mortgage based on your credit score. Every time someone pulls a credit check on you, your score lowers by 9-11 points. Sometimes that makes the difference between approval and a denial of your mortgage.
PROVE YOUR INCOME –
You will need proof of your income to get a mortgage – a month of pay stubs and 2 years W-2’s for the regular employee and 2 years of Federal Income Tax forms for the self-employed. The lenders will figure your self employed income based on a 2 year average of your NET annual income (after your deductions). If you make lots of money but write it all off, it may be difficult to get you a mortgage.
“SHOW ME THE MONEY”–
Just like in the movie, you will need to show where your money is for closing and down payment. If it isn’t in a bank, you should get it into an account right away. We need to verify that you have the cash and that’s pretty tough to do if the money is in the kitchen in the cookie jar. The lender also wants us to track the money, so save your deposit receipts and if you are getting a check for a bonus, from someone buying something from you or as a gift from a relative, please make a copy of the check you receive before depositing it and also make a copy of the deposit receipt from the bank so we can show the lender where the money came from. Please call your loan officer before you do any of the above transactions to be sure you follow the correct procedure in documenting everything correctly.
JEFF DOTSETH & Associates, REALTY, Inc. By Referral Only*