Posts Tagged ‘application’
We didn’t think it mattered
Joe and Susan wanted to buy a home in Charlotte. They spoke with a loan officer and began the credit application. Joe had been on his job for just over a year, and Susan almost a year.
John went on to explain that he had worked for Widgets Inc for 6 years, but got caught up in downsizing. After losing that job, went to work for Wares LTD and has been there for about 14 months. Susan worked for Dr. Bones for 3 years, but when he retired, she went to work for the Miracle Hospital and has been there for 10 months. Their loan application was signed and a closing date was set.
As the processing of the loan got under way, the lender approved the mortgage loan and all that was left was final verification of employment dates. With that done, the excited couple could soon get the keys and move in! But wait… uh oh… we have a small problem.
Duirng the final verification of employment, Widgets Inc reported back that Joe had left in August of 2006. Wares LTD’s records have Joe starting his job with them in Jan 2007. As well, Dr. Bones reported that Susan had left his employment in Feburary of 2007 while Miracle Hospital has a start date of July 2007. So on both accounts we have some serious job gaps!
The loan officer requested clarification from Joe and Susan and they explained… “Yes, we did have a few months in between those jobs. During that time Joe worked through a staffing company until a solid job came and Susan worked at a Nurses on Call company until the Hospital came through.”
When asked why they did not explain this up front, they simply did not think it mattered because they considered the jobs “part time”, held them for just a short time between their “main jobs” and neither of these “part time” jobs were anything they would include on their resume.
At this point, everything with exception of the job times was cleared and ready to go. Since lenders want to ensure that a borrower is still on the job when they close a loan, this is usually one of the last items verified. Needless to say, the brakes got put on the mortgage loan.
With further information and documentation, all employment was finally verified and Joe and Susan closed on their Charlotte home. However, they closed 5 days later than expected and those 5 days were the most frustrating days for everyone involved.
When you are applying for a mortgage loan in Charlotte (or anywhere for that matter), it is important that you disclose all jobs you have had that cover the past 24 months. Even if it is a job that does not seem to fit your resume, give the information to your loan officer. Be prepared to have dates of employment and a reasonable explanation for any job gaps.
Getting the most accurate information up front will make the entire process go much smoother and make your closing happen faster. Leaving out “unimportant” details can actually delay (or in some cases prevent) closings.
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Mortgage Applications Should be Secure
As a mortgage professional in Charlotte, I go out of my way to take care of my clients. When it comes to their security and their privacy, I leave nothing to chance. So when I recently visited a local Realtor’s website and looked around their website, I was shocked at what I found.
Read the rest of this entry »
Why Should I Be Pre-approved for a Mortgage Before Looking for a Home?
Special Contribution Article
Planning Your Mortgage and Seeking Pre-Approval
The Benefits of a Professional Consultant
Choosing a good lender is a key element in managing your mortgage. A professional consultant won’t just provide a loan, they will help you select the one most beneficial to you and your long-term goals, and then, help you manage that debt over time. There are not many lenders out there who provide this type of personalized service. Read the rest of this entry »
What Lenders Look for in Home Mortgage Applications
Special Contribution Article
What Lenders Look for in Home Applications
Once your loan application is filled out and sent to the lender for review, the first thing they will look for is your ability to payback the loan you are requesting. A grand slam loan package is Read the rest of this entry »
When is an application really an application?
According to federal guidelines, lenders are required to provide mortgage loan applicants with certain documents within 3 days of application. Some of these basic documents include a Good Faith Estimate and a Truth in Lending Statement. These forms are to disclose to the potential borrower estimated costs and rates associated with that lender’s program.
The question is, when is this required? When does an application actually become an application?
Calling a lender and giving name, address and social security number is not an application. In order for an application to be made and considered, a lender must be able to make a decision… in other words, they need all the information. Personal information like the name, address and social security number of the borrower; Financial information like work history, income documents (such as W2’s and paystubs) and bank / investment statements; credit information like a credit report or alternative credit if needed… these are just the basics. Oh.. there is one more very important item needed… a house.
If you are refinaning a mortgage and have submitted the other items needed, then this is an application. However, if you are thinking of buying a home, you will need a offer to purchase to complete your application. At this point, your lender will be required to provide you the disclosures required by law.
This being said… if you, as the borrower, would like this information earlier in the process, simply ask for it. If your lender has enough information to have a good idea as to the direction of your loan, they should be able to give something to you. If your lender does not have enough information yet, they can tell you what is still needed in order to provide this.
Beware of lenders that give Good Faith Estimates and Truth in Lending statements with limited information. Without the proper information, a lender can not give you solid information on which to base any decision. What they give you with limited information will be just as limited in its reality.
So how do you know if they are being straight with you? The bottom line is this… talk to your lender. Actually talk and feel them out. If you are not feeling secure in them after the conversation, try another lender. Even in todays world of technology, talking to someone will still tell you what you need to know… if you will listen.