Boston Property Management: Mistakes that delay Mortgage Approvals
Getting a mortgage is a tough task especially since you have to include a lot of different parties such as the mortgage lender, real estate agent, insurer, attorney or escrow officer, etc.
These are the mistakes one can make during the mortgage process. These mistakes can occur if you are not vigilant.
1. Not giving details of your financial profile
You need to include every single detail of your financial profile. A mortgage lender needs all that information so you can get the loan on time. So make sure that you give all the correct personal and contact information, employment and residence history, as well as information about your income, assets and debts.
If you leave out some details, it can derail the whole loan process.
2. Not providing documentation
Make sure that you have all the proper documentation available for your profile. This should include at least the last 30 days of your pay stubs, the last 2 years of your tax returns. If you are self employed, just keep the financial statements for the year. It helps to have two months of statements for all your asset account, a paper trail for deposits and withdrawals above $1000, as well as a home insurance quote and financials of other assets (homes and businesses).
It is essential to have all the documentation ready when you are applying for the loan. If there is any thing missing you will have to provide it.
Don’t leave out any information as your lender will run a credit check to verify everything. It will also result in debts, credit inquiries and information you may not have shared. So be prepared to explain that if you didn’t provide it.
3. Boston Property Management: Approval and Pre-Approval
A lot of people tend to confuse approval with pre-approval. So make sure that you get your loan approved by an underwriter before you make any offers to buy a home.
Basically “pre-approved” means that a lender considers you to have a good profile. Just remember that this does not mean that you have gotten the loan. You still need to get the underwriting approved by getting a loan commitment in writing. The loan will arrive once your file is submitted to an underwriter.
4. Not sharing details with the lender
Sometimes problems can arise if you fail to write down the critical milestones. You need to indicate how many days you have to secure a loan approval and the number of days it takes to close it.
Even though your real estate agent will take the initiative here, just make sure that both the lender and the agent are in sync with each other. If your lender fails to provide these milestone dates then you could be in for a loss of your initial deposit.
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