Follow these four steps to help ensure you’re ready for underwriting.
You’re busy. The last thing you want to do is email back-and-forth with your lender all day. Unfortunately, this happens far too often. Small things are forgotten or overlooked when initial applications are submitted.
Underwriting often comes back with documentation requests. Follow these simple steps to help ensure your underwriting process goes as smoothly—and quickly—as possible.
Step 1: Supply the loan officer with everything they’re requesting up front.
It’s common for borrowers to not provide complete tax returns or bank statements. Missing pages can significantly slow down the process. Not only does all income need to be documented, but federal guidelines also require documentation of any large deposits into your account (over $500).
Step 2: Protect your credit.
When purchasing a new home or refinancing your current one, it’s tempting to buy a brand new fridge or TV with the equity you plan to receive. Resist the temptation. Any time a new credit account is opened (even one from RC Willey) it can potentially affect your credit which can, in turn, affect your loan. It’s better to wait until your loan has funded before making a major purchase.
Step 3: Plan for an appraisal.
Even though appraisal waivers are becoming more common for refinances, it’s good to plan for an appraisal. Make sure you work with your loan officer to understand if you’ll need an appraisal and how you can prepare.
Step 4: Be prepared.
It’s an underwriter’s job to make sure your loan goes smoothly by making sure all requirements are met. You can help the process by working with your loan officer to discuss questions underwriting might have and being prepared to provide documentation as soon as possible.