Expectations home buyers should have in today’s mortgage environment

Getting a mortgage is every bit as arduous as you might think. The paperwork can be technical and complex. Here is what you should expect if you plan to buy a home in 2017 or beyond.

The reality is that the mortgage industry screwed up America, and the better part of the world, and paved the path to the financial crisis a few years ago. Fast-forward to 2017, the pendulum has swung so far the other way that getting something as simple as a 30 year fixed rate loan, is technical, and incredibly compliant with the amount of paperwork and disclosures required.

Communication -What this means to you as a homebuyer, is to trust your lender and expect the mortgage process in terms of the paperwork, to be very thorough. It’s reasonable that the mortgage process could be compared to an airplane ride. No air plane ride is alike each destination, flight attendant, captain, or any aspect to each individual flight is the same. Every loan is uniquely different as well. If you have ever been on a flight and experienced turbulence, that turbulence is the equivalent of a lender coming back and asking you for documentation. It’s virtually a guarantee, at some point, you are going to feel like the lender is asking you for the same information several times which is a byproduct of the environment that we are in. A good lender can do a thorough job examining your financials before you go house hunting . This will ensure you can get a loan while intercepting future issues that may arise.

Time –Time is not on your side when purchasing a home for two reasons. You might have a penalty for every day you don’t close on time adding up to as much as $100 per day. The other reason is your interest rate lock. It could cost you as little as few hundred or as much as a few thousand. This is based on the rate lock extension needed to extend your rate lock commitment to the investor. The expectation your lender has is for you to provide documentation as requested within 24 hours. Delays in the process can be costly and can also be very stressful especially  if everyone is counting on the transaction to close by a certain day and it doesn’t due to failure to receive documentation in a timely manner.

The best two things you can do for yourself when purchasing a home are: Get the needed documentation to your professional in a timely manner and expect to be on call for each day of your 30 day purchase contract. Going into the transaction with those expectations upfront will ensure, not only the transaction closes on time, but that you have an understanding of what lenders want, why they want it and how big your purchase comes together.

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