It’s all about needs

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@jimgayhomemortgage.com