Over-the-top doc­u­men­ta­tion

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Call, call, call... Meet, meet, meet... Email, email, email... Fax, fax, fax... Sign, sign, sign. Doc­u­men­ta­tion is the name of the game in to­day’s world. A re­cent client summed it up by say­ing, “So it ap­pears that too much pa­per­work is not enough.” She hit the nail on the head. Over-the-top pa­per ver­i­fi­ca­tions along with moun­tains of dis­clo­sures have cre­ated a frus­trat­ing time chal­lenge in the loan-ap­proval process.

Let’s be­gin this tu­to­rial with a list of these new pro­ce­dures and dis­clo­sures that be­gin as soon as the stan­dard loan ap­pli­ca­tion has been ini­ti­ated. These dis­clo­sures must be writ­ten and sent to the bor­rower’s own email ac­count:

1. An email re­quest­ing the bor­rower to agree to the ex­change of elec­tronic dis­clo­sures— the bor­rower must ac­knowl­edge this be­fore we be­gin.

2. An email ask­ing the bor­rower if he or she “in­tends to pro­ceed.”

3. An email re­quest­ing the bor­rower to ac­knowl­edge the “loan es­ti­mate.”

Af­ter the above dis­clo­sures are ac­knowl­edged, we send the bor­rower’s file to the un­der­writer along with all the re­quired in­for­ma­tion that we have gath­ered. Af­ter the ap­proval the bor­rower is then sent the fol­low­ing:

1. An ac­knowl­edge­ment that she or he wishes to pro­ceed with the ap­praisal.

2. A lock dis­clo­sure when the loan is locked.

3. An ini­tial clos­ing dis­clo­sure, which starts the three days nec­es­sary be­fore any clos­ing can be con­sum­mated.

All of this, of course, is con­firmed elec­tron­i­cally through the bor­rower’s email ac­count. What about those who have never turned on a com­puter, much less had an email ad­dress? Yes, there are those liv­ing just fine with­out ei­ther... un­til they de­cide to pur­chase a prop­erty. In such cases, we as­sist the bor­rower in se­cur­ing an email ad­dress.

Our job has evolved as a mort­gage com­pany. We now­more then ever as­sist the bor­row­ers with their pa­per­work and work with them to ac­knowl­edge the many dis­clo­sures re­quired. The good news is that we have been learn­ing the new process for over a year.

My ad­vice is to ally your­self with a loan of­fi­cer and a mort­gage com­pany with plenty of ex­pe­ri­ence. Do not be dis­cour­aged. The process is cer­tainly worth the end re­sult of a fab­u­lous in­ter­est rate for the pur­chase of your new home.

Jim Gay was a real-es­tate bro­ker for 20 years and has been a con­sul­tant to For­tune 500 com­pa­nies. He is cur­rently a bro­ker/owner ofThe Mort­gage Place, Inc. (986-9080) and can be reached at jim@ jim­gay­home­m­o­rt­gage.com.

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