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 breath.
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 closes.
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 loans.
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.