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Prepare for your mortgage loan application

Prepare For Your Mortgage Application
 
St Paul, MN:  A few days ago, I took a loan application  for some first time home buyers. I’d talked multiple times with both the husband and wife leading up to the time of their full sit down application.Following my habit, I’d included a link to my mortgage website in every email to them, along with my other contact info.   I’d also emailed a link to my website page regarding the financial documents required for mortgage application,  then reviewed that list with them in detail prior to their appointment.

I always do this in the hopes that all the steps taken on my part will motivate my clients to do their part.  That they’ll organize, gather the documents needed, and be fully-prepared for our appointment together.  It makes for a far more smooth and quick application appointment and gets us both off to a good start.

Assurances had been received from this couple that “they had it under control”. They’d have all the required documentation in hand for our meeting.

And you know where this is going …

Instead the entire appointment was bogged-down while this couple rummaged through old paperwork and bills, searching for the documents they needed. And of course, they never found.

During the time they were rummaging, both were very distracted, unable to pay attention to what I was saying.  I’m betting, they didn’t retain half of what was said.

As they became more and more rattled, they sniped at one another … and then their comments to me started to take on an “edge” too. As their situation became more overwhelming to them and their frustrations grew, it was clear the appointment needed to end.  Directions were given to E-Mail and fax the remaining info I needed and then the application was over.

Why do I relate this story?

Because so much of the success to be found within mortgage financing, rests upon how well borrowers are prepared for the process. That preparation takes time, no doubt. Takes effort. Takes organization on the applicant’s part.   It demands their attention.

Today’s mortgage application and underwriting process is challenging. But much of the challenge can be overcome by home buyers if they follow the advice I give them.  Both verbally and above.

Taking the time to prepare, get organized, pay attention, make the effort … it all pays off in big ways.   Not least of all in how pleasurable the process of financing ends-up being.

Not do or see to these things?  You WILL encounter problems and big frustrations for sure. You will rob yourself of the enjoyment of buying your home.  And certainly, that’s not what you want.

Avoid that outcome. Right from your first inquiry, call, or contact with your mortgage lender and agent.  Be thoroughly involved.  Be prepared.  Be organized … or get yourself organized.   Follow-up on all requests made of you in a timely fashion.

Do these things and you will feel and be much more in control of the direction your mortgage processing takes, as well as its outcome. You’ll also greatly improve your chances for a more enjoyable mortgage process and home buying experience along the entire way.

Of course, working with a mortgage professional with over 20 years of experience and expertise helps a lot too!

Is the real estate market going Up or Down?

Is the real estate market finally going up, or still in trouble?

It depends on what market statistics you are looking at. Is there a real estate recovery, or is this just a small blip in the radar of a longer housing cycle?
For the 7th month, home prices of non-distressed properties have declined, according to Inman News. Not good news for sellers, but awesome news for buyers.
In another report,  pending home sales are up in March, an indicator of a real estate recovery, according to the National Association of Realtors. That index is now 111, and 100 or above is considered a healthy real estate market. The index in March 2011 was 89. The index right now is what it was in 2001 before the market started climbing.
But the public appears to be wary of all the discord between the talking heads, and all their doom and gloom. Buyers appear to be finally getting off the fence, taking advantage of super low mortgage interest rates,  and house prices not seen in a decade.
What’s different today? Is this just an uptick on the graph that will quickly be pulled down by the shadow inventory and new distressed sales?  Are we truly pulling out of the mire of dismay and dismal market we have suffered through since Fall 2008?
From my individual perspective, there is a change in the real estate market that I have not seen in years. Buyers are eager to buy, they are making offers, they are NOT sitting on the fence any longer, and good homes, priced right, especially in the under $200,000 market, are once again selling in just days with multiple offers.  The buy versus rent question is clearly leaning towards home purchase once again, especially for first time home buyers.
Buyers need to be fully pre-approved from a licensed mortgage loan officer and ready to make an offer.