Buying a home? come prepared with your financing letter

Here are some helpful tips for making a successful mortgage application in the 2009 lending world so your loan officer can help expedite a legitimate financing letter for you to give your Real Estate Agent BEFORE you start home shopping.

1. Be prepared when you apply.

Get your documentation together for the first meeting with your mortgage professional. Saying you can’t find a document won’t relieve you of the responsibility for getting it.

2. Be sure to disclose everything

An IRS form 4506 (tax return request) will lead to discovery of any write-offsfor the home business you are running. Your pay stub will show any child support you are paying if it’s court ordered. Disclosing it up front is betterthan having it turned up by your lender.

3. Work to improve your credit scores.

If you have missed a payment, contact the lender to see if you can resolve the issue before an adverse item goes on your credit report. If you see an error on your report, get it corrected immediately. You, alone, are responsible for keeping your report free of errors.  Get a free report (the only truly free site) at annualcreditreport.com.

4. Be patient.

Due to increased paper work and greater due diligence, loans are taking longer to approve and to close. Remember, your mortgage professionals can’t speed up the process if you delay in providing documentation.

5. You may be asked for additional documentation.

The current market climate has made everyone very careful, so some lenders are asking for info beyond what Fannie Mae, Freddie Mac or FHA/VA require.

6. While ratios are being strictly enforced, flexibility exists where there are strong compensating factors.

Write a good explanation letter where needed. If you anticipate a raise, get your boss to document it. If you have a retirement account with a former employer,get the paperwork immediately. © 2009, Real Estate Information Services, Capitol Assets, Choice Finance, Choice Real Estate, Inc.

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