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.