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AMERICAN CAPITAL
MORTGAGE, INC.
444 Galisteo Street, Suites B & C
Santa Fe, NM 87501
Toll-Free: (877) 663-4422
Direct: (505) 983-9222 or 988-4422
Fax: (505) 983-7988 or 988-3872
Send e-mail
Mortgage Loan Process should be Painless
(Originally published in Santa Fe Real Estate Guide / The New Mexican)
Because of past unpleasant experiences, the thought of completing an application for a mortgage loan might fill you with anxiety.
What’s frustrating about applying for a mortgage is the continuous requests for more and more documentation: another pay stub, one more explanation letter, two more bank statements.
The best way to minimize the time required to process the loan and obtain loan approval is for you to select a lender and a knowledgeable loan officer who will prepare you for the application process by knowing which items will be needed. Your Realtor also will be helpful in assisting you with communications concerning information needed.
Mortgage companies have four primary areas of concern that they need to address to their investors: stability of income, asset verification, housing payment history, and credit history.
Stability of income verification requires documentation such as W-2 forms, pay stubs, tax returns and profit-and-loss statements for the self-employed.
In order to verify your assets, proof must be given of checking and savings accounts and stock certificates for a 30- to 60-day period. When the sale of a house is involved, a closing statement is needed that shows the funds from the sale that you will use to purchase the new house.
Two years of rental or mortgage payments must be verified – for the former, written verification from landlords will suffice.
Credit histories are reported by credit bureaus to lenders. These reports summarize financial records describing your credit history and become a significant part of the lender’s decision.
It is important to look for a mortgage company that will communicate clearly the entire process you will face, including the documents that will be necessary and the course of action to be taken in assembling these items. From there, the key is to move ahead quickly and efficiently to obtain approval. If the process is managed properly, you will know in a matter of days, not weeks, whether you are qualified to proceed toward closing.
It is wise to shop around to find a company that will minimize the pain of the process. Ask potential lenders the following questions:
- Does your company do underwriting in-house or do you send the application to another lender?
- How long will the appraisal take to complete?
- When will the loan interest rate be guaranteed?
- How long has your company been in business? Can you supply references?
- How often will you communicate with me on the progress of the loan?
Look for a loan officer you can trust who has a reputation of being courteous, knowledgeable and hard working. It is the loan officer who should coordinate the loan process from application to closing. A mortgage company is only as good as the loan officer who is quarterbacking the process.
Asking the right questions can ease the pain of borrowing money and help create a pleasant experience instead of one filled with anxiety and concern.