AZ Real Estate

 

Getting a mortgage isnt just about whether you can qualify. Its also about whether you can work well with your loan officer, making the process smoother and easier for both of you. Ideal customers are not only financially well-positioned, theyre also knowledgeable, realistic and cooperative. Conversely, no matter how qualified you are to get a mortgage, your loan might never close if you ignore instructions and treat your mortgage lender like a misbehaving puppy.

Some people get it. Some dont. You dont have to have perfect credit or super-high income to qualify. Its really more about the attitude than just your finances. The number one reason loans dont close on time is because of a non-cooperative borrower. One of my Lenders asked a customer, Can I get your two most recent paystubs? and an hour later, I they had them. The next customer, its two weeks and the lender is still begging.

With that in mind, here are nine ways you can become your mortgage lenders favorite client:

No. 1: Be well-qualified to get a mortgage

You dont need an 800 credit score to get a home loan. Nor do you need a 20 percent down payment to buy or 20 percent equity to refinance. Still, hitting those numbers — or close enough — certainly doesnt hurt your chances. Many borrowers have excellent credit, plenty of cash and at least a small down payment or some equity in their home.

The ideal person has a good credit score, good down payment, low debt ratio, been at their job forever, no bankruptcies, no foreclosures — just a straight-up regular good person, My Lender says.

No. 2: Dont be clueless about your credit

Some borrowers are overconfident. Others genuinely arent sure whether they can qualify. Neither is a problem for lenders. The true troublemakers are those who know they dont have a prayer, yet make the call anyways. If youve never paid anybody on time ever in your life and you have a bankruptcy from last month, thinking you can get a loan and calling a lender is nothing but a waste of time for everybody.

No. 3: Respect your loan professional

The best mortgage customers come from referrals because they bring an attitude of trust to the relationship from the start. Whether the referral comes through a financial planner, real estate broker or next-door neighbor, it tends to create a much better working relationship. When the client has the approach of working with an expert and is appreciative of your stature, that just makes for a better experience for both the lender and the customer. Youre really doing business together.

No. 4: Dont be angry and confrontational

Qualifying for a loan isnt that hard, but a lot of paperwork is required. Before your loan can be approved, every i must be dotted, t crossed and checkbox ticked. There are no exceptions and arguing doesnt change that. Realtors or Lenders dont enjoy being questioned and yelled at by people who are annoyed at lender requests. Lenders request documents for a reason. They explain on a regular basis: This isnt Joes rule. Its not Mortgage Unlimiteds rule. Its the rule.

No. 5: Be educated about mortgage basics

Lenders generally like a mortgage-educated customer. An educated customer already understands basic concepts which allows the lender to help, guide and coach them rather than trying to explain that they are not a crooks.

Whats a basic concept?

One is that no-closing-cost loans dont actually exist. The costs you dont pay upfront are hidden in a higher interest rate or larger loan amount.

No. 6: Dont be an overly aggressive rate shopper

Most borrowers understandably want the lowest interest rate and fees they can get, and shopping for the best mortgage rates is certainly how to go about it. But some borrowers are downright aggressive about rate-shopping, making themselves nuisance customers. In fact, that super-low rate doesnt really exist. Our market is so competitive that rates and fees are all so close from company to company. Theres not some magic pool of money thats cheaper.

No. 7: Be open and honest

Giving the lender all the facts about your financial situation upfront is a huge help. What matters is the client telling the lender everything they know upfront, providing all the paperwork needed as quickly as possible and being open to the fact that their going to ask for additional paperwork.

What information is important?

Examples include a prior bankruptcy or foreclosure or a recent gap in your employment history.

No 8: Be cooperative about following instructions 

When lenders ask for documents theyre usually very specific about what they want. Its up to you to comply rather than try to take shortcuts. Bank statements are a good example.

If they ask for two months bank statements with all the pages and you send a web printout showing you have the money in your account, thats nice, but what they actually need is two months bank statements with all the pages.

No 9: Dont be uncooperative about requests for documents

Nightmare customers refuse to hand over personal financial documents that are necessary to close their loan. Many of the additional items a lender asks for sometimes dont make sense to the average person. There was so much fraud six or seven years ago that today every loan goes through the deepest of scrutiny. Delays are especially problematic if youre buying a home or your rate lock is about to expire.

When a client resists and were struggling to get the paperwork, that ends up creating a lot of stress for both the client and the lender, as well as the Realtor representing the Buyer. The bottom line is that lenders appreciate clients who have a positive attitude as well as a strong financial position. If youre a terrible customer, you might still get a loan, but it wont be a good experience for you, your lender or your Realtor.

Priding myself on being The Source of the Source in AZ Real Estate, I have access to many lenders who are and have been very helpful and informative as well as successful at successfully completing approval loans for all my Buyer clients.

from The Cascade Team Real Estate Blog http://ift.tt/1KBD51s
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