Is Getting a Mortgage More Painful than a Root Canal?

I’m training two new loan officers and this week I asked them to write down, as a borrower, things that they like and dislike about obtaining a mortgage. As a loan officer, you have a behind the scenes understanding of what it takes to get a loan to the closing table so you eventually lose the perspective of the borrower. You can’t un-know what you know. I wanted to grab the thoughts of these new loan officers before it was too late. Wow, did it open my eyes! They had a much longer list of dislikes than likes so let’s take a look and see what troubled them because it’s probably the same things that trouble you too!
1 – It takes too long to get a loan closed. Why?
Well, I’m sorry to have to tell you but it probably won’t get better. In the few years prior to the mortgage meltdown, many mortgage companies were closing loans in just a few short days. With the availability of subprime loans that required minimal documentation, there were few road blocks on the way to the closing table. Time has proven that there should have been some roadblocks. Maybe we wouldn’t have all the foreclosures we have on the market right now if there had been. Since that time, government involvement in the mortgage process has extended the time it takes to close a loan because of the additional disclosure requirements. And, I would not be surprised to see even more intervention. But if you step back and consider what you are doing, is this really a bad thing? For most people, the purchase of a home is the single largest investment that they will ever make. Plus, this is where you will be living! Is it not worth taking the time to have the proper financing in place and being patient while the necessary processes are completed? I know the wait is frustrating because of the excitement of getting into a new home. But it’s worth the wait. You don’t want to become a statistic. Be patient, knowing that your loan officer is doing everything to complete the process legally, with your best interest in mind.
2 – Why do I have to provide all this information? It feels like an invasion of privacy.
I guess the best way to address this one is to simply ask the question – What would you want to see before loaning money to someone to buy a house? Sometimes we look at lenders as if they are inanimate objects and we fail to see that there are real people investing their savings or retirement plans into the stock of the bank. If the bank makes bad decisions, some retired factory worker in North Carolina may see their investment account dwindle. Again with the mortgage meltdown, I hope that everyone has come to the realization that much thought should go into the approval of mortgage loans. We don’t want more foreclosures. But not just for the sake of the homeowner or the bank investors but also we have now seen that the entire world economy is affected. The underwriter that approves your loan application never has the opportunity to meet you or form any subjective opinions of your desire or willingness to repay the debt. They only have a stack of papers that tell your story. The more information that you can provide, the more complete the story of ‘you’ becomes. If you have full intentions of repaying the loan and you are credit worthy, be prepared to provide enough information to prove it. And remember, the underwriter’s job is on the line. You will help yourself by helping them.
3 – Why don’t you ask for everything you need at once so you don’t have to come back to me later for more?
Oh, if only it was that simple! With every file, there is basic information that is needed. Pay stubs, W-2’s, tax returns and bank statements will always be asked for. But the mortgage process is a work in progress. It’s a project that starts with the basics and then evolves and grows until it becomes a closed loan. As the facts are pulled together, the appraisal is received and the underwriter begins to put the pieces of the puzzle together, it’s not unusual to be asked to provide additional information. Remember, the underwriter is trying to get a complete understanding of the project without the benefit of a full conversation with you.
These basic complaints about the mortgage process are fair concerns but with a better understanding of what it takes to get to the closing table, it should help to relieve the stress and irritation while waiting for your special day. You will be collecting the keys to your new home before you know it. Just be as cooperative and patient as possible. And always start with an experienced loan officer that understands how to guide you along the way.
To work with an experienced loan officer, call Jamie Harrington at United Carolina Group – Mortgage Planners at 828-632-0650 or email jamie@unitedcarolinagroup.com. With 14 years in the mortgage industry, you will be in good hands. Check out the website at www.UnitedCarolinaGroup.com. Join Jamie on Facebook or follow her on Twitter @jamieth1.