Always Fear the Reaper During the Mortgage Loan Process

Question:

Harley,

I am in the process of getting all my ducks in a row to buy a home.  I'm a little hesitant at this time because I just saw what one of my best friends went through when they tried to purchase their first home.  All I can tell you is she was told everything was fine at first, but was denied the day before closing.  She did everything that the banker or loan officer told her to do and couldn't even understand why that person turned her down and said it was their fault.

Needless to say yes, it was an absolute nightmare that ended in disappointment.  They got turned down the night before the closing because a  car note that wasn't showing on the credit report in the beginning that was showing up right before they close which caused them to not be able to do the loan.  I just want some advice on how I can avoid something like that because I don't see getting approved and then being denied helpful in the process.  Any ideas?

Answer:

Dear Dazed and Confused,

It is this simple… Fear the Reaper!!!

I will tell you that I’ve seen these type of issues many times. I can also tell you based on what you told me is the loan officer may not have asked the right questions in the beginning. In my experience I have seen that buyers will not tell their loan officer about any debts owed of not asked specifically. Loan officers are highly trained to know and to ask the right questions to be able to determine Eligibility for pre-approvals. Of you are unsure of the right loan officer to use them ask your realtor or check sites like Zillow.com and search for loan officers in your area, They are rated on this site , you can also go to the state of Alabama’s NMLS site where you can search loan officers to check stats of their required license by the state,

So, how do you avoid the Reaper? When you find the loan officer that you would like to do your loan, try to think of it like going to the doctor. When you go to the doctor and want to get an opinion on what could be wrong with you, you always are prepared to answer questions about her health issues, problems, or medications you take. It is basically the same when meeting with your loan officer. Your loan officer will need to know about you and your complete financial situation. And will request copies of paperwork evidencing what you tell them. This is how your fear the Reaper and avoid any instance of him. I say Fear the Reaper because there is such thing as Dr. Grimm Reaper in the mortgage loan world. The Reaper will come out and certainly cause sudden death on your loan and prevent you loan approval as surprises of undisclosed debts , overstated income, and understated assets that are not accurate will affect initial commitments.

Good luck with your exciting new adventure! Always give accurate information to steer clear and not have fear the reaper!

Contact Carmen Hill for all of your mortgage needs:

ph. 251-504-3232