American Gateway Bank's Blog

7 Tips to Help Speed Up Your Home Purchase or Refi...

In case you haven't heard, home mortgage rates are still at historic lows.  If you haven't taken advantage of these low rates, the time to act is now. 

You may be thinking to yourself about the horror stories you have heard from your friends or co-workers.  You know the stories that people tell about how it took months upon months to get their refinance done.  Well, purchasing and refinancing do take a little longer than they used to but it shouldn't take months.  The key is being prepared before you begin the process of applying for your mortgage.  Below are a few tips to help you prepare for your first time home purchase or the refinance of your existing mortgage:

1. Gather together all pages of your federal tax return.  Mortgage companies can't accept just the first two pages.  Unreimbursed employee expenses on Schedule A can kill the deal if they are large enough.  When using other types of income, other than Wages (Social Security, Disability, Child Support, Alimony, etc.) be prepared to document the history of that income, and the continuance of that income for at least 3 years.

2. Collect all pages of your last bank statement (even if blank).  Any deposits other than payroll will need to be sourced and documented. Keep all paystubs and full bank statements during the process, in case they are needed for updating the file.

3. Self-employed individuals will need to submit copies of their corporate returns if they own > 25% of a business.  They will also need to submit a Year-to-Date Profit and Loss Statement for the current year if the current date is past the first quarter.

4. Once the file has been submitted to underwriting, mortgage companies need to get responses from inquiries back from you as quickly as possible.  The faster they get the information back and to the underwriter, the quicker the file is put back into the pipeline to be re-reviewed. 

5. Please do not make any major purchases while your mortgage is in process.  There will be a soft pull of your credit before the closing takes place and any new purchases will have to be added and put back through underwriting.

6. Make sure that all second liens on property are disclosed at application time to the Loan Officer.  Second mortgages are not always on the credit report, and they can add a big surprise when they title search comes back.

7. A call to your Homeowner's Insurance Agent informing them that you are planning on completing a refinance or home purchase is a great idea.  This step could save time with the agent closer to your closing date when the lender is setting up the new Mortgagee Clause, etc. and the insurance agent is trying to reach the borrower for authorization.

Being prepared is the first step in assuring a speedy process for your mortgage refinance or new home purchase.  It is also great to have a trusted mortgage professional.  American Gateway Bank has an experienced mortgage department and would be more than happy to help make your house dreams a reality.  Should you have any questions, please visit our Mortgage page or call us at 225.368.2500.

Posted by Edwin Lagarde at 12:20