It’s all about needs

Home - Santa Fe Real Estate Guide - - SPOUSESSELLINGHOUSES - JIM GAY

Po­ten­tial bor­row­ers come to my of­fice want­ing a mort­gage loan to buy the home of their dreams. They come right­fully ex­pect­ing ad­vice, trust, pa­tience, di­rec­tion, full ser­vice, and fol­lowthrough... even a lit­tle hand-hold­ing, when nec­es­sary. But, what do they go away with? A heady Needs List from their loan pro­fes­sional. That’s right! Along with the knowl­edge and guid­ance they should re­ceive on that first visit, they will be in­structed to re­search and gather in­for­ma­tion needed to get their loan jour­ney on it’s way. It can be con­fus­ing. You go to get some­thing and you leave un­der­stand­ing that to get it, youmust turn over ev­ery de­tail of your per­sonal fi­nan­cial life. It can be baf­fling, over­whelm­ing and just plain te­dious. Wel­come to mort­gage loan fi­nanc­ing in 2017!

The items in the fol­low­ing list are es­sen­tial and when re­ceived by your loan of­fi­cer will start the ball rolling. Ready Set Go:

1. The last two years of your fed­eral tax re­turns;

2. The last two months of bank state­ments, as well as those for any ac­count from which funds for clos­ing will be drawn; 3. Copy of your driver’s li­cense; 4. The last two years of yourW-2 state­ments; 5. Re­cent pay­check stubs; 6. A com­plete list of debts, in­clud­ing credit cards, stu­dent loans, car loans, and child sup­port, along with min­i­mum monthly pay­ments and bal­ances;

7. The past two years of any busi­ness-tax re­turn; 8. So­cial Se­cu­rity awards let­ters; 9. List of as­sets., in­clud­ing bank state­ments, mu­tual fund state­ments, real es­tate and automobile ti­tles, bro­ker­age state­ments, and records of other in­vest­ment and as­sets;

10. Your land­lord’s con­tact in­for­ma­tion or re­cent mort­gage coupon;

11. Ver­i­fi­ca­tion that your earnest money has cleared your bank.

These are ba­sic re­quire­ments. In each case, there are spe­cific re­quire­ments that fit the bor­rower’s in­come sit­u­a­tion. For in­stance, self-em­ployed bor­row­ers may have to sub­mit a cur­rent-year Profit and Loss State­ment, es­pe­cially if the year is half over or the past year’s tax re­turn has not been filed. If there is a gift, the bor­row­er­might need to prove that it is from a rel­a­tive.

Your Re­al­tor must also be aware of cer­tain “do’s and don’ts” that can hin­der or speed the clos­ing, such as per­sonal prop­erty not con­veyed with the house and the dif­fi­culty of tak­ing ti­tle in a trust. Ad­vis­ing bor­row­ers ahead of such mat­ters helps put clients on the right track.

This cer­tainly is not the most thrilling ar­ti­cle I have ever writ­ten, but it ranks in the top three ad­vice ar­ti­cles I truly be­lieve can­make or break a deal. Your best bet is to pro­vide the needed doc­u­ments promptly. Never white-out or cross out any in­for­ma­tion on a doc­u­ment. Pro­vide ev­ery sin­gle page of the doc­u­ments. If a more cur­rent doc­u­ment comes in dur­ing the loan process, be sure to sub­mit it. Just go along to get along and that day of dayswill surely ar­rive: Clos­ing Day! That is def­i­nitely my goal for you and will be­worth it in the end. I prom­ise!

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. (505-9869080) and can be reached at jim@jim­gay­home­m­o­rt­

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