Tips For A Smoother Loan Process
A purchase involving a loan usually takes 15-45 days.Not only can it take longer to close the transaction there are a myriad of details the can complete derail the purchase.It is because of this complexity of a purchase with a loan that I recommend starting the entire process very early.
How early? Considering the fact that lenders usually need 2 months of statements and a general sense of financial stability of the borrower you should at least talk to someone as early as possible. It depends on the complexity or lack there of of your finances.
Lets begin with the difference between a pre-qualification and pre-approval. A pre-qualification is a general interview, can be over the phone, with a loan office to see if you can qualify for a loan for for how much. The Pre-Qualification takes so few details into consideration that it’s almost worthless.
Starting the process early will but you in a more certain position so that when you finally buy a home your finances will be much more solid and in fact make you a stronger borrower in competitive market.Just talking to a Realtor and lender early on does not obligate you to anything, it’s simply a smart move.
Get pre-approved early, study the buying process and don’t make any changes to your finances before and especially during the home buying process without consulting with your loan officer, please!
Most of these are simply not to be done during the buying process.
- Mattress money: if you have money for a purchase not in a bank you'll need to document where it came from. The lender will want to see what it is and where it's from.
- Changing jobs: do not change jobs, even if it's in the same field.
- Deposits and withdrawles: don't change the amounts in the bank too much. Even a larger deposit that cannot be documented can be a problem just as removal of money can.
- Buying stuff: don't buy anything large during the loan process. The means hold of on buying the new TV, the furniture, especially anything that will lower the amount of money in the bank or add to your debt on a credit card.
Phoenix Home Buyer's Guide