Be the “captain” of your mortgage
Getting approved for a mortgage can be a stress-free experience for borrowers who take the time to prepare and approach approval like a job.
Indeed, as a borrower, you become a full player in a team where the objective of each member is the same: to achieve the closing.
It could be argued that your role as a “borrower” is even more important than the roles of loan officer, loan processor, home appraiser, loan underwriter and more.
As the borrower, you are the captain of the team.
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The players on your mortgage team
As a mortgage borrower, the how you engage and participate with your loan is more important to getting your loan closed on time (and without problems) than you might think.
Think about your loan approval in terms of a sports team, where each player plays a specific role in the success of the team.
First, there is the loan officer. Sometimes referred to as a “loan originator,” the role of the loan officer is to assess your situation and develop a game plan.
Your loan officer will ask you questions and use their knowledge of the mortgage market to determine the mortgage options that best suit your needs.
Options may include fixed rate or adjustable rate financing; or a recommendation to consider a FHA loan or VA loan.
Your loan officer will be impartial in presenting your options. Ultimately, it will be your choice as the borrower to choose the loan that suits you best.
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Often, but not always, a loan officer will work with an assistant to help coordinate the processing of a loan.
This assistant can have one of the following titles: Loan Coordinator, Loan Assistant, Production Assistant, Production Manager, or any other title. However, the role of this assistant is the same: to help you close your loan as quickly and cleanly as possible.
The team will also include a loan processor – sometimes two!
Loan processors are the unsung heroes of the mortgage approval process. From the start, they are busy collecting documents, reviewing documentation, making calls and requesting checks, and keeping “the file” clean.
Loan processors are also responsible for ordering home appraisals, when needed. Notable exceptions include the VA Streamline refinancing and FHA Streamline Refinancing, none of which requires a home appraisal.
The evaluations are managed by another team member – home assessor.
The role of the appraiser is to support your opinion on the value of your home. The appraiser will visit the home you want to mortgage and do a full appraisal to determine its fair market value.
The value of your home becomes the basis of the loan. Your loan-to-value ratio (LTV) uses the findings of the appraiser, for example, and all information gathered to date is passed on to the loan underwriter.
The role of the loan underwriter is to review all of the information provided by you, the borrower; by credit organizations and your employer (s); by the assessor; and by anyone else who has provided information to support your loan approval.
This can include your lawyer, accountant, homeowners association (if applicable), and others.
With all the information in hand, the underwriter then confirms that they meet the eligible rules for the loan you selected at the start of the approval process.
The “qualifying rules” are known as the mortgage guidelines. You must follow the mortgage guidelines to get approval.
Loans that meet mortgage guidelines are approved and authorization to close is issued. Clear-to-close means that your loan has received final approval, in which case a Closer is assigned to the team.
The role of the nearest is to be an officer your payment, presiding over your signature and ensuring that all documents are signed as required. Documents are not released from the nearest underwriter until a loan is entered into at closing.
On a purchase mortgage, the nearest one will make sure that the house is legally transferred to you, the borrower, after all the papers have been signed.
With refinancing, the closest one will guarantee that your old lender will be paid off and your old mortgage will be paid off.
You are the most important player
To close a loan, whether it’s a purchase or a refinance, large groups of people need to work as a team.
There’s your loan officer, your production assistant, your processor, your appraiser, your underwriter, your loved one, and more.
There is also you – the most important player.
As a borrower, your job goes beyond choosing the loan program that’s right for you. Once this loan is selected, your job is to provide the necessary documents and signatures to meet the terms of the loan.
This means, in most cases, providing proof of income; proof of assets; and, proof of employment to assist with underwriting. It may also mean providing supporting documents for a missed mortgage or credit card payment; or proof that a previous lien has been released on your home.
There are other things that you will be asked for as well, and when those requests are made, your job as a borrower is to respond to those requests as quickly and completely as possible.
The faster you respond to your lender, the faster your loan can be closed.
Close quickly can you access to lower mortgage rates. Closing slowly can ruin your loan. Truly. The internet is replete with stories of home buyers who failed to close their original rate foreclosure and were forced to accept a higher rate on closing.
Take control and the team will follow
To be the MIP, you must act like the MIP.
Be proactive about your loan. Schedule a weekly meeting to speak with your loan office. Find out where your loan is going, what documents are still missing, and what remains to be done.
Ask what you can do to get things done.
When asked for additional documentation, provide it without asking questions. Lenders don’t want to ask you for additional documents any more than you want to give them.
If they ask, they need it.
Get involved in your loan and the team will thank you. Your restlessness and your heart and be rewarded. You will see other team members working in kind. Everyone will bring their “A” set to match your efforts and interest.
Championships are won when an entire team is consistently doing their best.
What are the mortgage rates today?
It has been a great year for mortgage rates. The affordability of homes is high and mortgage payments remain low. If you are considering buying a home or refinancing a home, you might be shocked at what you can save.
Take a look at today’s real mortgage rates. Your Social Security number is not required to get started, and all quotes come with instant access to your live credit scores.
Click for today’s rates now (September 19, 2021).
