There was a time not so long ago that the loan process was fast and easy. You met with your loan officer, talked for a few minutes, maybe signed a disclosure or two and the next time you had to be involved with your loan was when you went to the escrow company to sign your loan documents. Yes….…those were the days.
Unfortunately, all of that is behind us now. Massive regulatory changes to the industry have made the process more complex and the tightening of lending guidelines requires borrowers to part with far more information than ever before. Expect to have to provide copies of your tax returns, pay-stubs and bank statements as well as any statements covering your investments.
Plan to meet with your loan officer before you ever start looking for a home to buy. When you meet for the first time, bring all of your documentation so that the lender can perform an accurate evaluation of how much you qualify for. That way, when you go out with your realtor to look at homes, you will have the confidence of knowing what you can afford and that your loan can get done.
So often people start looking for homes before they learn what they can afford and then they grow increasingly frustrated when they find out later on that they can’t buy the house they have become emotionally attached to. A knowledgeable loan officer can save you a tremendous amount of anxiety and keep the frustration out of the process.
When you do reach that magic moment when your offer is accepted, be prepared to be as responsive as possible to your loan officer. The added complexity in the process means that the timetable has been impacted too and the faster you can provide your loan officer with what they need, the better the chances that your deal will close on time.
Today more than ever before it is vital that you have a competent and technically knowledgeable loan officer to guide you through the process. When you do find one you trust, work with them and be prepared to be an active participant in the process.
Let me be your guide! If I can be of assistance or answer any questions, please contact me.
Steve Allen Connect Home Loans (805) 237-8811.