What is the Lender Looking for When They Review the Loan Application?

The lender wants to know about your personal financial picture, including savings and credit history and your employment stability.  The co-borrower’s history is also taken into consideration.  The lender also considers the loan amount and appraised value of the home you are looking to purchase.  Not every applicant is approved the first time through the process. If the underwriter has any questions or

Successful Home Mortgage Loan Application

concerns, he or she will require certain conditions be met before they approve the loan.  Pre-approval prior to house hunting lets you know exactly how much you are qualified to borrow in advance.

The more you can tell the loan officer about your personal financial picture the better your chances are of getting an approval.  I like to meet with my clients as soon as possible so we can discuss their financial situation and goals.  A young couple of mine, “First Time Home Buyers” initially were very skeptical of why I was asking them so many personal financial questions.  They were offended by the questions and reluctant to share this information.  After a couple of discussions I was able to gain their  trust and explain to them that in today’s lending environment the bank wants to know who they are lending their money to and if the loan will get approved or not.  I don’t want to give anyone false hopes or go through the agony of the loan approval process if they are not going to get approved.  That’s why I try to get as much information up front as possible.  The young couple finally understood and we got them approved.  They are currently living in their new home in Hyde Park.  They also just had their first baby and we remain friends to this day.

Learn more about our mortgage services here http://www.yourusb.com/nreagan

What Lenders Look For In Home Loan Applications

Once your loan application is filled out and sent to the lender for review, the first thing they will look for is your ability to pay back the loan you are requesting.  My team and I have a streamlined loan process to help you get your ducks in a row prior to the underwriter’s review.  A great loan package is in perfect order and answers all the important questions up front.  We don’t want the underwriter to have to look for information or try to figure out what the loan request is for.  We know what underwriter’s are looking for, based on long-term relationships with them and extensive knowledge of guidelines for a multitude of loan programs that are available today.

 I was able to help a client who had gone to another lender initially and was not getting a response from the mortgage “broker” on whether he was approved or not.  This had gone on for weeks and my client was under contract and getting close to the contract date or he would lose the house.  The mortgage broker would email my client and ask for additional documents throughout the process.  He never did get approved.  The mortgage broker was not diligent in requesting all of the necessary documentation that is necessary for loan approval up front.  He just simply wanted to get the loan booked and hoped for an approval.  When my client finally had enough of this broker we met and before I met with him I gave him a list of all the required documents.  I got him approved in time for closing.

Learn more about our mortgage services here http://www.yourusb.com/nreagan