I've said it before but I think it bears repeating: being a Loan Officer in
this day and age is not for the faint of heart. Loan Officers are being blamed
for everything from the financial markets to global warming to coffee
Now that you are applyling for a mortgage it's the perfect time to act
crazy and pay us back right?
Actually, no. If you want a semblance of order in your financial life I have
compiled a list of what you can do to not only help your Loan Officer maintain
their sanity but yours as well. So without further delay, here are six easy
steps you can take to prevent your Loan Officer from going crazy.
Continue to pay your creditors on time. Yes, you are close
to the remarkable feat of closing a loan in the midst of all this mortgage
craziness but if you make late payments to your creditors during your loan
process bad things will happen. Very bad things. And yes, we do check your
credit one last time right before we are finished with your transaction. If you
have to rob a Plaid Pantry to pay your creditors on time maybe it's time to
reconsider this whole mortgage thing.
Don't buy a new car, new alpaca, new country etc. Taking on
new debt while in the midst of getting a home loan is all kinds of crazy. Your
lender needs to take a "snap shot" of your financial picture and expects you to
financially hold your breath for about 30 days. (45 to 60 days for credit
unions and banks). Try not to turn blue.
Be prepared to provide the source of deposits to your account.
If you have a whole bunch of seemingly random deposits showing up in
your bank account we need to know where those came from. Outside of electronic
payroll deposits, be prepared to provide documentation and proof of the source
of these transactions on your statement. If you have been waiting to sell your
pancreas for a little extra cash, wait a little longer until after your loan
Stay on the job. Even if you feel like your life is a
living example of the movie "Office Space" please don't switch jobs in the
middle of your transaction or worse yet, quit right after signing your loan
papers. It's really important to have the appearance of stability. We lenders
like to think you'll have a consistent source of income and continue to pay on
your loan for the next 15 to 30 years. We're crazy that way.
Try not to ask every person in your life for mortgage
advice. This is important. Crazy uncle Nester is not the guy to ask
about mortgages or about anything important for that matter. Find someone that
you know and trust that recently completed a transaction.
Chances are, they'll direct you to a Loan Officer that knows what they are
doing. Finding a Loan Officer you can trust that does a great job is the key to
having a good transaction. Having 15 different relatives giving you advice is
the very definitionn of crazy.
Be prepared to provide documents. Lenders have to be able
to verify your income, your assets and a whole host of other things throughout
the process of completing your loan. We understand that not everyone likes the
"system" but if you're trying to obtain hundreds of thousands of dollars for a
mortgage it shouldn't come as a surprise that lenders will actually ask for
things. You might be able to travel under the radar when selling macrame scotch
tape cozies but that's not going to work when you're asking for institutional
I hope this list gives a laugh or two but more importantly, helps to keep the
stress levels of everyone involved in your transaction a notch or two lower.
Sara and I are always available for questions should you wish to contact us.
Have a great day.