These things about today’s mortgage loan process will drive you crazy. Know what lenders will want….
Patriot Act
This says lenders do not make loans to drug dealers, money launderers or terrorists. Obviously, 99.9% of today’s mortgage loan borrowers are completely on the up and up. However, this does not change the fact mortgage lenders are going to be under a very tight scrutiny to have to verify every single dollar in that bank account.
Any dollar going into your bank account in excess of $200 beyond your income is going to be have to be explained, documented and sourced. This means if you’re transferring money around you will need to produce a paper trail on those funds.
Opening and closing credit
This one is a biggie. Let’s say for example you have a credit card that has a monthly payment at $150 per month and a bed loan that has a payment at $75 per month, all in all, your payments tally out at $225 per month. Sounds manageable right? Well those debts is exactly the basis for how your lender will qualify you and support your ability to repay. If you take more debt or close credit accounts this can adversely affect your score.
Soft pull before closing
Mortgage lenders pull your credit again before you draw final loan documents and sign docs to buy your house, or sign your life away on another refinance. Lenders pull credit at the beginning of the mortgage loan process to identify what liabilities you have and determine how they’re going to put together and structure the mortgage loan that you’re applying for with your income and other monthly obligations.
Once the process has begun and your loan is through underwriting, before loan documents go out for you to sign, the lendable plus soft credit inquiry.
The soft credit pull meaning it does not adversely affect your credit, but it does provide a reading on any liabilities that may have changed since your original application. If any of these original liabilities of change and a loan documents go out for you to sign, the lendable plus soft credit pole. The soft credit pole is exactly that it is soft meaning it does not adversely affect your credit, but it does provide a reading on any liabilities that may have changed since your original application. If any of these original liabilities of changed you may face a predicament and potentially not being able to qualify for financing.
Do yourself a favor take every piece of advice and every tip your mortgage company provide you at the beginning of the process and you’ll have no problems being able to secure financing. I trusted and experienced mortgage loan professional can very easily provide you the guidance necessary in explaining the inns and outs of the little things that can turn into big things if not properly handled.
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