Many experts in the real estate industry predicted the credit crunch to have eased by now but that is not the case. Good borrowers with excellent credit payment histories are being turned down due to rising foreclosures from borrowers who cannot afford their mortgage payment. Some of the keys to getting approved is the loan guidelines have become more strict and underwriters are eyeing loan applications with more scrutiny. The borrower never gets to speak with the underwriter and probably never will. So, the approval is in their hands.
An experienced loan officer can convey or send your message to the underwriting department along with your application which could be the missing link or go-ahead to getting approved for a loan. Especially, if the underwriter was on the fence before, now they have something to hold their hats.
Also, a borrower should educate themselves on the mortgage process by going to their local library or bookstore to get informed on the basics of a home mortgage. The reason being is so they can ask the loan officer questions that can be relayed to management so you know you are proactive in becoming approved. In addition, knowing a bit more about mortgages before you apply will help in choosing the best possible home loan product for your needs. You will be less attracted to a negative amortization loan if you knew all about it and also be less vulnerable to unscrupulous lending tactics.
Mortgage companies and loan officers are eager to receive loan applications from prospective borrowers they've never met in person. A borrower can still apply for a home loan over the telephone just like the days before the internet.
An in-person meeting can be very important for those expecting to encounter unusual walls for loan approval. These walls may include self-employed borrowers, applicants with credit scores under 720, and little liquid assets. Borrower credibility is added when you explain your situation, dress appropriately and arrive with related documents in hand for your meeting.
The lender's loan officers, underwriters and staff work hard at packing files to make it a more efficient system. So they really appreciate it when a borrower is prepared also. It makes everyone's job easier and more streamlined. Being prepared such as knowing your credit scores and having supporting documentation to dispute any possible credit report errors helps tremendously in all phases. Borrowers should stay in touch with their mortgage lender during the process. Make it easy for them to reach you and be proactive and forthcoming to the loan officer you are working with. In the end your chances of getting approved increase dramatically.
Frank Collins is an avid investor in real estate and contributor to Jumbo Home Loans and a website to Find Low Mortgage Rates from trusted lenders in your area.
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