Getting a mortgage to buy a home is a big deal—and it works best when you and your loan officer are on the same page.
Think of it as a partnership. Your loan officer brings the expertise, but your role is just as important. Here are three things you can do to keep your loan on track.
Be Honest
Even if you’re working with an experienced loan officer, discussing your finances with someone you just met may seem a little uncomfortable. That’s understandable, but keep in mind that your loan officer is on your side—they want your homebuying journey to be as successful as you do.
However, that only works if you’re open and truthful about your financial situation. That means disclosing all sources of income, debts, and financial obligations upfront, and letting your loan officer know immediately if anything changes with your job status or credit activity. You’ll also want to be transparent about any past credit issues, recent large deposits or withdrawals, or expected gifts from family members, since these things can affect your loan approval.
Keep in mind that your lender will double-check your income, assets, and credit with other sources, so there’s no point in withholding information—everything will come out during the underwriting process. In other words, honesty really is the best policy.
Be Organized
As soon as you commit to buying a home, it’s wise to gather all the key documents your loan officer asks for and put them in one place. That includes pay stubs, W-2s, bank statements, tax returns, a photo ID, and records of any assets such as retirement or brokerage accounts. If you’re self-employed, you’ll also need recent profit-and-loss statements. And if you’re receiving gift funds from a family member, your lender will need a signed gift letter.
These documents are important because your loan officer needs them to show your lender that you can repay your mortgage. It’s also a good idea to keep all financial paperwork in one place, so it’s easily accessible. If your loan officer needs any updated information, you’ll have current documents at your fingertips.
Be Responsive
As your loan moves forward, your loan officer or the underwriter working on your loan will likely ask you for more information or to explain something involving your finances—such as a gap in employment or other loans you have, such as a car loan. When that happens, it’s important that you respond quickly.
You’ll also want to keep an eye out for disclosures. After you apply for a mortgage, your lender will send you a Loan Estimate, which outlines your estimated interest rate, monthly payment, closing costs, and other loan terms. Before your loan closes, you’ll receive a Closing Disclosure that shows the final loan terms and costs, so you can compare it to your Loan Estimate and spot any changes. You’ll want to review both documents promptly and let your loan officer know if anything seems unclear.
Keep in mind that delays in providing the info your loan officer requests could hold up the closing of your loan, so responding quickly and staying in regular contact with your loan officer throughout the process is critical.
Responsiveness works both ways, too—so never hold back asking questions to make sure you understand the process, up to the closing of your loan.
The Bottom Line
While there can be occasional hiccups in the mortgage process, being honest, organized, and responsive helps ensure things go as smoothly as possible.
Plus, working with a local lender like Right By You Mortgage can give you even greater peace of mind. We offer an on-time closing guarantee if you meet a few simple requirements—like turning in documents quickly and responding to information requests within two days. It’s just one more way we work hard to deliver a great mortgage experience.
If you’re thinking about buying a home, our expert loan officers are ready to help. Find a local mortgage loan officer or send us an email at inquiries@rightbyyoumortgage.com to get started.