How To Avoid Stress During Mortgage Process And Close On Time
This BLOG ON How To Avoid Stress During Mortgage Process And Close On Time Was PUBLISHED On May 8th, 2019
The mortgage process does not have to be stressful.
- The number one and main reason on How To Avoid Stress During Mortgage Process is to make sure that borrowers are properly qualified before being issued a pre-approval letter
- Over 75% of our borrowers at Gustan Cho Associates are folks who either gotten a last-minute mortgage denial or are stressing during their mortgage process
- There is no reason for a mortgage denial if the borrower has been properly qualified
- Those who think if you have bad credit or low credit scores will bring stress during the mortgage process are wrong
- Gustan Cho Associates at Loan Cabin Inc. are direct lenders with no overlays on government and conventional loans
- There are ways on How To Avoid Stress During Mortgage Process
- The Gustan Cho Team at Loan Cabin Inc. will not issue a pre-approval if we have an ounce of doubt that the borrower will not close their loan
- We take a step further and make sure that our borrowers will not just close on their home loans but make sure that they close them on time
In this blog, we will discuss on How To Avoid Stress During Mortgage Process and close on time.
Qualification And Pre-Approval Stage Of Mortgage Process
Not all pre-approvals have the same weight.
- There are loan officers who often issue pre-approval letters in a matter of minutes without properly qualifying borrowers
- The pre-approval stage is the most important step of the overall home loan process
- Home buyers depend on their loan officers when they get pre-approved
- Making sure that the borrower is fully qualified is how to avoid stress during the mortgage process
- The mortgage process does not have to be stressful
Steps To Follow To Avoid Stress During Mortgage Process
There are certain steps on how to avoid stress during mortgage process. The reason borrowers stress during the mortgage process is because of their loan officers. There is no reason why anyone should stress during the home buyer and home loan process.
Here are the steps loan officers need to take prior to issuing a pre-approval letter:
- Go over the 1003 mortgage loan application with the borrower line item per line item
- Many loan officers will assume whatever data and information consumer listed in 1003 is correct
- There are instances where borrowers’ can transpose social security numbers, forget a digit, or enter the wrong information
- After running the credit report, review each tradeline (including negative tradelines) line item per line item
- If public records such as judgments and/or tax-liens do not report on the record report, it will get discovered during the mortgage process
- All lenders do a third party national party search and all judgments, tax liens, and other public records will show up
- Loan officers need to make sure there are no credit disputes on derogatory credit tradelines that are not yet 24 months old
- Credit disputes will halt the mortgage process
- Once credit disputes are retracted, borrower’s credit scores will drop
- If loan officers anticipate a serious drop in credit scores once borrowers retract credit disputes, downgrade it to a manual underwrite
- VA and FHA Loans allow for a manual underwrite
- Make sure to run the file through the automated underwriting system (AUS)
- Go over the conditions of the AUS with the borrower
- Make sure borrowers can meet all conditions on AUS
- If the loan officer is not clear with borrower’s income, get a verification of employment before issuing a pre-approval letter
- Make sure borrower have sufficient qualified funds and/or gift
- Check and double check with your own lender overlays
- Double and triple check borrowers income, credit, credit scores, credit report, financials, public records, your mortgage company’s overlays, assets, liabilities, AUS, prior to issuing a pre-approval letter
If a loan officer follows the above steps, the chances of a last-minute mortgage denial and/or stress during the mortgage process is minimal. There are instances where extenuating circumstances do come up by borrowers such as a loss of a job, job re-assignment, family emergencies, personal situations, or other factors. Make sure to share it with your loan officer to remedy the situation and/or find a solution in the early stages of the loan process.