It’s no secret that real estate transactions (and the loans that support them!) are complex. The market changes and the governing laws change; while interest rates and qualification requirements fluctuate.
When you lay these variables on top of an individual borrower’s situation, there is not a single deal that is the same. Nothing is a slam dunk and every loan has its own character so to speak — unique elements that may require special handling. As a mortgage banker, my number one goal throughout (in addition to getting my client a seat at the closing table) is to make sure he or she is not set up for failure.
Over the years I have probably heard every possible objection to my requests for specific documents or why validation of proof of funds is required. The answer is two-fold:
§ It enables us to assess the entire financial picture before a buyer gets too involved in the process and endures unnecessary expenditures and disappointment.
§ Having documentation before it is needed saves time (and possibly the purchase!). When the underwriter requests something a week prior to the closing date, having it in advance keeps the ball rolling. What could be a prolonged and stressful process (as the clock ticks and the moving truck is already in transit), instead becomes a simple scan and email.
As I explained to one client, I am not trying to make your life miserable by asking you to produce more evidence just because I need more paper to fill a file. What documents are received, when they are received, and the format in which they are presented is the key to having the best possible chance of getting done what needs to get done.
A mortgage loan requires substantiation of so many seemingly random bits of proof; but they are ultimately synchronized to meet an objective. Having the data that keeps the flow of detailed communication is not intended to put a buyer through the wringer – it is so they come out on the other side of a deal with the loan product that suits their means.
Ultimately, when I ask clients for information, there really is a method to my madness. I don’t want them to fail. I just want whatever is required to get that mortgage loan up on its feet and walking into that new home.