Via Jason Sardi, Pennsylvania Mortgage Broker:
How fast your loan closes is often up to you.I tell folks two things these days and both can result in great opportunity. There is an abundance of inventory (houses) in most markets and the money (interest rates) is still cheap. That said, Lenders & Banks are combing through files with a fine toothed comb these days; everything has to be pretty much perfect. No more of the days of throwing things against the wall, lax & scattered documentation, or loan files that are missing this or that or that other thing they are asking for, other than that blood sample;-)
So, if you aren't informed... it's time to become such. You, the consumer, have more power than you think in your mortgage loan closing sooner rather that later. Create a file, whether you are a renter or current homeowner, of the things I will mention below. When the time comes to buy a home or refinance the one you are already live in, it will make your life that much easier. If you are looking to refinance, only a few things from the first few lines apply to you...
* Last 2 years W-2's and 2 most recent pay-stubs
* If you are a renter, have your Landlord's name, address, and phone number handy. Make sure you have that info for the last 2 years of your rental history.
* Make sure, if you are renting, to pay your rent by check. Keep copies of your last 12-24 months of cancelled rent checks. This gives you a documented housing history, that's HUGE in the Lender's Financial Eyes.
* When you find that home of your dreams, or at least the one that will be your starter home, a signed sales agreement from all parties (buyer and seller) will be needed.
* Typically, the only money out of a pocket prior to closing is for the appraisal. It is a third party fee, paid directly to the professional who will do a market evaluation of the worth of your home.
* Last 2 Months Bank Statements (All Pages) & the most recent statements on all asset accounts (401K, IRA, Mutual Funds, Retirement, Etc.)
* If you are Self-employed, you'll need the last two years tax returns with all schedules and attachements... along with a year-to-date Profit & Loss for your business.
* For purposes of identification, you'll need copies of your social security card and photo I.D. (typically your Driver's License)
* If you are refinancing, you'll need many of the things above... but will also need your most recent mortgage statement & homeowner's insurance deck page (which is the top page of your homeowner's insurance). It's also a good idea to get copies of your most recent statements on all other accounts you want to pay off... assuming you want to consolidate high interest debt.
* If you own more than one property, you'll need the most recent Mortgage Statement, Homeowner's Insurance Deck Page, & copy of any leases you have on rentals.
* Any credit issues (late payments, bankruptcies, judgements, etc) must be addressed in a very detailed credit explanation letter and appropriate supporting documentation, if applicable.
* If you aren't currently escrowing your taxes, you will need copies of paid/unpaid tax bills.
* Retirement/Social Security award letters if you are receiving that type of income.
This isn't an extensive list, but it will give you one heck of good start. You have more control than you think, if you don't believe me... I cite a legendary cartoon... G.I. Joe. "Knowing is half the battle."InformationContact InformationRatesRate: $1ProfileService Area: PennsylvaniaYears of Service: 7
NIce reblog, Mirela. Nice post Jason Sardi. Great advice to all consumers. Knowing what you are getting into before you dive is great for managing an otherwise sometimes dramatic event and in todays environment, even critical. Plus it will help you "weed" out potential buyers and not aste anyones time.
Thanks
Bo
btw, good title agents have a huge impact on the outcome also! :)
That they do, Bo. Thanks for the mention, Mirela.