Florida Home Loans and Unintended Consequences

Despite the recent surge of digital domination, it’s still a world mad with paper. And even though a mortgage loan client provides the proof positive paperwork requested by this Florida mortgage banker, it sometimes generates the need for paperwork to support the paperwork.  Sounds crazy…but it’s true. (Emphasis added by author.)

Florida Home Loans and Unintended Consequences

And there’s nothing I can do but explain to the home buyer that when certain information is provided it may create the need for additional clarification on the roller coaster ride to the closing table.

Ironically, in an attempt to set client expectations, I created a document that states that over the course of the process some documentation may require the provision of more. It can be a can of worms, but it is a means to a successful end.

Example:

  • I ask a client for bank statements to support their application that shows they have $50,000 in their savings account.
  • I receive the bank statements and they show two deposits in the past week of $25,000 each.
  • Since these are large and un-documented deposits, I have to request more information to substantiate the source of these monies.

And the clients are right, all I asked for originally was proof of funds, but if the proof of funds looks like it was (in this case) contributed from a party outside of this transaction, I have to know where it came from.

Clients get frustrated. I’m not being nosy and I’m not trying to be difficult. If it’s an issue for which I need supporting evidence I am simply trying to clear the way for the underwriters who are going to pick up every rock and potentially slow down the entire transaction.

At the end of the day, if we get this stuff squared away at the giddy up, it will set the pace for the entire deal.

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