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Be
prepared to provide additional documents and information
to your lender immediately. Without these items, the
lender cannot move forward with processing your loan
Once your signed loan package has
been received, the lender will usually begin the formal
approval process. This involves verifying your:
- Credit
history
- Employment
history
- Assets
including your bank accounts, stocks, mutual fund
and retirement accounts
- Property
value
Additional Documentation.
Additional documents or verifications may be required
and you'll want to respond promptly to any requests
for additional documents. This is especially critical
if your rate is locked or if you plan to close by a
certain date.
Mortgage Brokers and Lenders:
The mortgage broker is the person or company who
is your main contact throughout your loan. They are
often able to work with a number of lenders, who actually
provide the funds for the loan. Typically, the lender
pays the mortgage broker a fee for acting as the intermediary
and providing all the customer service.
Stay in Communication: The lender will have an
analyst, usually called an "underwriter",
crunch your numbers and verify your documentation to
confirm your ability to repay the loan. Once you are
in contract on a property, there may also be a loan
approval committee which will meet to review the underwriters'
conclusions regarding your creditworthiness, and to
evaluate the property on which they are lending. This
is called the underwriting process, and questions are
bound to arise. Be sure to return your mortgage broker's
calls promptly to keep the process moving forward smoothly.
Check in with your broker periodically.
Other Considerations.This
is not the time to make any major purchases. Do not
buy a car, furniture or another house until your loan
is closed. Anything that causes your debts to increase
might have an adverse affect on your current application.
Do not move money into your bank accounts unless it
can be traced. And if you are receiving money from friends,
family or other relatives, contact your lender first.
Request
A Free Consultation With Our Mortgage Specialist
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