Getting a loan is a pivotal point in many people’s lives. This means they are spreading their wings and making a big commitment. It shows a sign of maturity and growth. When people buy a home, they have come to the point in their life where they have become successful and stable. This is a great feat for anyone.
As you may know, there are some aspects of getting a loan that can be rather frustrating at times. This all falls in the area of paperwork. There are many papers you will sign at closing, yes, but before you get there, you will need to provide numerous amounts of information and sometimes very readily. Here are some items that you will need to have ready before you approach a lender about being financed through them:
1. Paystubs
2. Payoff letters that show payoff if not showing on your credit
3. 2 of the most recent tax returns
4. 30 days of bank statements
5. Drivers license
6. 2 of the most recent W2’s
These are not all of the items they will need, but it is a good start. Have these ready and bring them with you when you attend your first meeting with the lender. They will be more eager to work with someone how provides paperwork quickly and hassle free.
Now, on the other hand, you might have all your ducks in a row to begin with, but you need to make sure you can stay on top of what they need promptly. In the long run, this will save you time and you will close faster on your home. For example, if you are getting an FHA financing through a bank and you have a gift from a relative for $10,000.00 toward your down payment, they will require a gift letter. This is a piece of paper that you have to get to them immediately. The longer you take, the longer the process will be drawn out.
Let’s say you have gotten all your paperwork to the lender on time and that day when they asked for it. You had no delay and made the best effort you could. You might get a call from the lender saying they have not received your paperwork, etc. The best thing to do at that point is get it to them again. Although you may have brought them what they need, it could have got misplaced or thrown away even. Lenders are typically not the most organized people at times due to the amount of different clients they see. It is your responsibility to stay on top of your financing progress. Call and ask your lender questions so you are fresh in their mind. Maybe even provide a follow up email or call confirming the receipt of an item they requested. Most items can be faxed in initially and things can get easily shuffled around in a fax machine.
Overall, you need to make sure that you are organized as well as stay on top of your loan progress. Ultimately, you are the one it will affect most. If you are not looking out for what is best for you; who is?
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