After completing the steps above we will be reaching out to schedule a pre-purchase consultation. At our meeting we will review loan approval strategies, market interest rates and next steps. If you have any questions please feel free to call us ( M – F 8am to 5pm) at 480-553-8770 and after hours or weekends please call/text my cell at 480-251-6141.
Now take a few minutes to review my quick Mortgage Steps Videos below to ensure you are best prepared for the next steps in the process.
Why so many documents...?
After the subprime crash in 2008 the government implemented checks and balances that has improved sound lending practices BUT the issue with this is it comes in the form of more documents from you and your mortgage lender. I believe, overall the regulation put in place was very needed.
There are 4 items that mortgage lenders must verify:
- Credit ( Score & History) – we have options for a wide range of credit scores and we can provide credit action plans to help increase crediting as well.
- Capacity ( Ability to Repay ) – typcially you want your total debt including your house payment to be less than 45 % of your monthly gross income. We have a few programs that can go higher.
- Collateral ( the homes value & condition ) – with an appraisal we checking the homes value AND the homes conditions. Once we receive the value I will call you to review the value and condition listed on the report. We lend based off the purchase price or appraisal whichever is LOWER.
- Capital ( Down Payment ) – we have down payment assistance options to get you into a home for very little.
And YES, we will need additional documents during the process – such as new bank stmts, pay stubs, employment info or credit explanations. We will work with you to get these documents in quickly, if needed.
Most common delays & how to avoid them
- All pages – please provide all pages of documents you are submitting. If it says 1 -5 please provide all 1 -5 even if the last page is blank. And do not black out anything as this will only raise questions.
- IRS – with government regulations we are required to verify the income document you submit to us with what the IRS has. To do this we submit a request for tax transcript to the IRS. This can become a delay; most common is the address on our document doesn’t match the address you show on your tax returns… if you have moved or used a po box or work address.
- Appraisal – we recommend that we order the appraisal asap in the process to ensure there is no delay. The appraisal process can take 5 to 7 business days.
- Inaccurate info – We need accurate income info, work history and asset information. Please talk with is about anything you are concerned with and we are happy to work through it. We will find out the information and we would rather find out upfront rather than at the end of the process.
Close timeline – When writing an offer to allow enough time to do you due diligence. We recommend at least 30 days but be mindful of the weekend and the day you submit the offer
Your offer is accepted, what now...?
- Be sure to send us the purchase contract as soon as you know the seller accepts your offer.
- Once we receive the contract we will review and set up your loan disclosures for review and then we will call you to verify the price, loan amount, payment, rate and down payment.
- Next, we will send you an email that will prompt you to log into our secure webcenter to access and sign the loan disclosures. Please e-sign the documents within 24 hours to avoid delays. Just below the e-sign document there is an option to “browse” and “upload” document. This is great because you can upload documents securely directly into your file for processing review.
- We have a proactive approach – we will send all parties weekly updates each Monday if Monday is a holiday it will go out the following day. PLUS reach out 5 times proactively on key miles stones.
THANK YOU for allowing us to SERVE you with perhaps one of the largest financial decision of your life.