Are you a Mortgage Lender’s Headache?

We are taught very early on in business that the customer is always right and every measure needs to be taken to make certain that the client is satisfied. As the mortgage client, you have a great opportunity to assist your lending team to facilitate a smooth transaction. Don’t be a difficult borrower; use this guide to learn how to be a transaction facilitator and not a roadblock for your new home purchase.

A mortgage transaction is a hands on process that requires various levels of involvement from the client. Regardless of how proficient your loan officer’s company and process are, they still require your participation for success and to meet the closing date and mortgage commitment date laid out in your purchase and sales agreement . The mortgage originator needs you to send over documents exactly as they are requested and to do so as quickly as possible. Aside from the gathering of loan documentation and signing disclosures, there are a few other measures you can take to prevent yourself from being the focus of a Lettermen Top Ten of difficult mortgage clients.



Co-Signing Loans:

When you co-sign a loan for a friend or family member your credit is tied to that loan. So someone else’s irresponsibility will end up being a black mark on your credit as well. If you are planning to buy a new home, and taking advantage of the Massachusetts spring real estate market it is wise to avoid co-signing on a loan for the time being, that way you aren’t risking late payments or having to produce additional proof of payment paperwork.  Trying to prove payment history to keep your debt to income ratios in line can create unnecessary paperwork headaches.

New Loans:

Do you want a new home or a summer sports car? Preparing to buy a new home takes financial discipline and sacrifice. Sure having that summer convertible is nice while the sun is out, but being able to park one car in a new garage day after day will bring you more long term joy. Don’t buy “toys” that will impact your long term plans of home ownership.


Loan Advances:

Pay-day advance loans and tax refund advance loans are not the way to get ahead financially. These short term loans are typically associated with high interest rates and leave you struggling to just make the minimum  payments. Look at cutting back instead of borrowing to get ahead.

Credit Inquiries:

Experian, Equifax, and TransUnion, the three major credit bureaus, weigh credit inquiries in calculating your credit score. Once you have selected a lender that you want to move forward with put the credit inquires on hold until after your closing. Having too many creditors check your score can push it down a few points and negatively impact your mortgage rate leaving you with higher borrowing costs than necessary.

Mortgage BuddyMortgage Buddy Tip: With the passing of the Financial Reform Bill known as Dodd/Frank having your credit pulled now triggers mandatory disclosures from the inquiring party and the credit bureaus. This can lead your lender to question why you are applying for more credit forcing you to write letters of explanation for the inquiries to make sure there isn’t any fraud. Make the transaction easier on yourself and don’t pull your credit once your have decided on a lender.

Buying a new home requires some effort to keep all the moving parts heading in the right direction. A good loan officer will provide you with the right guidance to make certain your new home purchase transaction is a success. Follow these steps and you will be the borrower that other loan officers wish they could work with.

This Post is “Mortgage Buddy Approved”

Mortgage Buddy Icon

Leave a Reply

  • (will not be published)

Can't read the image? click here to refresh

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>