It's all about the documents. A great, experienced, Loan Officer knows how to collect and REVIEW the correct documents a Borrower needs at the application stage. The Loan Officer is the "gatekeeper" if you will, for the loan application. If the gatekeeper is lax in executing her duties, a major FAIL is heading your way.
1. Borrower submits three months worth of bank statements, but only the first two pages for each month. The statements clearly indicate at the bottom of each page, "Page 1 of 4." The LO should immediately call/text/email the Borrower and request the missing pages. Otherwise the documents will go into the SYSTEM (yes, use a tone filled with dread as you read that word aloud) and it will be weeks before the Borrower finds out those last two pages are missing and required. FAIL.
2. Borrower submits paystubs. LO misses the deduction for "GARNISHMENT" on the paystub. Borrower forgot to tell the LO about the garnishment that is taken directly from his paycheck. Weeks later, as the Underwriter underwrites the loan for approval, he comes across the garnishment. File stops and proof/explanation is requested. FAIL.
3. Seller's Attorney puts WRONG address of property on contract of sale. LO misses this. Appraisal is ordered for WRONG property. FAIL.
4. Seller's Attorney forgets to deposit the Purchaser's down payment (Earnest Money Deposit or EMD) check. Loan is approved subject to verification of down payment. Oops! Check must be deposited (after Seller's Attorney finds it buried beneath three weeks of files, hamburger wrappers, and unopened mail). THEN, check must clear Purchaser's bank account. THEN, Lender will want to see the cancelled check and proof the money was actually withdrawn from Purchaser's bank account, which means waiting for the next month's statement to come in (ALL PAGES, of course).
5. Purchaser applies for mortgage at a Depository Lender (the BIG BANKS) instead of a Local Mortgage Banker. Quality of service; 'nuff said.
On and on I can go...I have 23 years experience and lots of war stories to share!
Loan Officers with serious experience and a commitment to their clients understand their responsibilities as "gatekeepers" and operate with a heightened level of paranoia to be sure to collect and review every document and to move the process along by communicating clearly about what is needed to provide a quick, successful, loan approval and closing. The SYSTEM can be complicated (there's lots of hands that "touch" a Loan Application file), or fluid depending on the quality of the loan application submitted and the accompanying documents.
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
Be prepared with 2 years of full tax returns, W2, last month's pay stubs, two months of bank statements, any leases, the fully executed agreement of sale and photo ID.
If you are self employed, the last two years FULL tax returns.
Have these items carefully checked by an NMLS licensed person BEFORE you go shopping for a home.
You'd be surprised what may be an innocuous item that means something to lenders.
The best example is a "large" deposit. Basically, any deposit over $200 that is not your pay check will be scrutinized. Have all documentation ready!
Fred Glick NMLS #133975
U S Loans Mortgage LLC #51022