Whether buying or selling a home, you want closing day to come quickly.
So what are the most common stumbling blocks we often encounter in the loan approval process?
Here are typical problems and some tips to make sure the exchange of keys goes smoothly.
1. Be upfront with the lending agent. Often, borrowers don’t want to reveal all of their financial statements and records, says neighborhood resident Pat Nagler, Senior Loan Originator with PrimeLending. A good lending agent will tell you at the start which documents are needed — hand them all over in original form—no deletions or alterations! Even if you’re pre-qualified for a loan, a borrower’s mortgage can be rejected if all financial records aren’t provided in the beginning. This ‘full disclosure of information’ also applies to circumstances when relatives gift a down-payment to a borrower.
2. All tax returns requested from the IRS must be validated and provided exactly as filed. If returns come back in a different format than submitted, the IRS will say “no records found,” which means going back to the IRS. That’s code for “delay,” says Nagler with PrimeLending.
3. Don’t buy a car or max out your credit card after receiving loan approval but before you’ve closed on your home. Adding additional debt, even if it’s short term, affects your debt-to income ratio and runs the risk of delaying or preventing you loan closing. Credit bureaus conduct constant credit monitoring and notify lenders of any new debt to ensure loan qualification up until the moment of closing.
4. If you’re required to make repairs prior to closing, get them done correctly and quickly, PrimeLending’s Nagler says. Agreed-upon repairs not being completed prior to the final walk-through process can also make final loan approval complicated.
5. Here’s a big one: Don’t select a lender based solely on social media, someone you’ve never met and who may not even be in our market. “It’s important to do financial business with a licensed professional who also happens to be your neighbor. Problems are going to occur, and it’s a lot easier to sit across the table and address them than to depend on an 800 number or automated email link. In this business, neighbors look out for neighbors.”
Nagler has been in lending “…for about forever,” she says, but more specifically since 1977, when she signed on with the Federal Housing and Urban Development (HUD) Department.
A Lakewood/East Dallas resident since the early ’80s, Nagler and her husband Tom’s three children are veterans of the Lakewood Elementary, J.L. Long Middle School and Woodrow Wilson High School chain.
When not supporting or attending local events, you’ll find Nagler at her PrimeLending office, 3500 Oak Lawn Ave., Suite 150, personally looking out for neighbors’ best loan options.
*A prequalification is not an approval of credit, and does not signify that underwriting requirements have been met.
All loans subject to credit approval. Rates and fees subject to change. Mortgage financing provided by PrimeLending, a PlainsCapital Company. Equal Housing Lender. © 2017 PrimeLending, a PlainsCapital Company. PrimeLending, a PlainsCapital Company (NMLS: 13649) is a wholly owned subsidiary of a state-chartered bank and is an exempt lender in TX. V021216.
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