I am finding lately that some of my clients that may have bought a home a few years ago and are now buying a home again are stressing quite a bit about some of the "hurdles" that they have to go through to get a mortgage.
I am trying to think of ways that I can prepare these people for the new way of processing loans versus the way it was done in 2006. Let me first give you a summary of how loans were processed in 2006 versus today...
Loan Process in 2006
1. Meet with your loan officer
2. Underwriter then has you breathe on a mirror. (Foggy = approved)
3. Loan closes in 3-5 days
Loan Process Today
1. Meet with loan officer to take loan application.
2. Sign loan application and disclosures.
3. Provide income and asset documentation such as paystubs, tax returns with all schedules and W'2s, checking and savings account statements, copy of drivers license, divorce decree if applicable, etc. etc.
4. Loan officer submits loan package to underwriter who will review and either approve, conditionally approve, counter, or deny the file. (Most common is conditional approval)
5. Meet the requirements of the conditional approval (This is usually what borrowers find to be tedious).
6. Order an appraisal and make repairs if required by underwriter.
My point is that it takes a lot more to process a loan today than it did a few years ago and I think we all (Realtors, Escrow agents, Loan officers, etc) need to do a better job of preparing our clients for this. When my clients have 2006 expectations it makes my job much more difficult. Is there anything that you say or do to help your clients prepare for some of the hoops and hurdles they may encounter? I'd love to hear your feedback.
About the Author
John Neil is a loan officer that is passionate about his profession. His goal with every transaction is to make a customer for life. The result is that 95% of his business comes from referrals of satisfied clients. If you need a cache valley mortgage, you can contact John at 435-770-2709. You can also follow him on twitter @LoganUTMortgage or facebook @facebook/MortgageNerd
