Key to a Smooth Mortgage Closing

Trick to a Smooth Closing

Trick to a Smooth Closing

As I walked out of the Title Company after one of our valued clients finished signing for their new VA mortgage today (9 days prior to their closing date), the trick to a smooth mortgage closing was as evident as it will ever has been. DISCLAIMER:  There are always cases where uncontrolled variables (low appraisals etc…) rear their ugly head and cause bumps in the home buying road.  However, there are many variables that can absolutely be foreseen and controlled.  So what is the trick to a smooth mortgage closing?  Keep reading!

Today’s Arizona mortgage environment is dominated by investors guidelines and interpretations that cause mortgage underwriters to require more supporting documents from today’s Arizona mortgage applicant.   The status of the mortgage world today also invites a mortgage underwriter to flip, unfold and strip down every detail included in a home loan application.  As a result, your Arizona mortgage loan officer now needs to also serve as your “pre-underwriter.”  They should in theory know mortgage guidelines as well if not better than a mortgage underwriter.  A loan officer that does can help you understand the trick to a smooth mortgage closing!  One that does not, well that is a whole separate issue.

Listen to Your Loan Officer

That is it!  Besides selecting a loan officer you can trust and that you know has the knowledge to properly steer you through the land of the home loan, the best thing a home buyer can do is listen to the advice their loan officer provides.  This is precisely what the buyers that signed today did and they did it to perfection.  It is what will allow them to experience a smooth mortgage closing (loan signed for today however they are waiting for the seller to complete a few items before they can close).

The clients that we signed today (in case you forgot – they signed 9 days before their scheduled close of escrow on an Arizona VA loan – which is not common) understood that there are hoops that must be jumped through to accomplish the goal of full, final and clear loan approval.  They also knew that they did not know.  They trusted us to guide them through the process.  Sound simple?   It is, however in all reality it is easy to begrudge today’s mortgage requirements and to become annoyed at the inconveniences that digging up document after document creates.  If this were a play, the script would read “enter stage left – Mr. Sanity Prayer.”  After all, sanity is accepting those things that you cannot change and mortgage guidelines/underwriter requirements are, well… “those things you cannot change.”

What can delay a smooth mortgage closing?

The clients that signed today without experiencing any turbulence throughout the mortgage process had 2 hurdles that were identified in the pre-approval phase prior to our team issuing a pre-qualification letter:

1. An income issue that needed extra, thorough and precise back up documentation from their employer prior to us being able to guarantee the entire income could be used
2. A credit reporting issue that HAD to be cleared up at the creditor level prior to this loan being approved

Both of these issues presented road blocks on the way to loan approval and inconveniences/time delays for the buyer.  The buyer had to put their house hunt on hold based on our advice regarding these two issues.   They also had to do some extra legwork to clear these two conditions.  This was the key to smoothing out the pavement on the road to their final mortgage approval and ultimately what will be their early VA loan closing.  Rather than stressing, fighting and scrambling to address these to issues while under the pressure of being in contract to purchase a home we advised/required that they fix them before venturing out to find the home of their dreams.

You never know where delays may pop up

Why?  There are unknowns.  You NEVER know exactly when that letter that is needed  to complete an approval will arrive.  Even if you did know, what if the letter arrives and it is missing a critical detail that underwriting will require.  And on and on…  Creditors, companies, landlords and other entities responsible for providing the documentation lenders need to complete a pre-approval are unpredictable and often unreliable.  Best bet is to play it safe and clear the hurdles that can be seen ahead of time

Now, the client can make this process less stressful by working with their loan officer.  Ultimately however, I am a firm believer that it is the Arizona loan officer‘s responsibility to educate the client regarding why taking certain steps to complete pre-approval are critical and beneficial.  Put together, these 2 components make for a great mortgage experience and a smooth mortgage closing!

By Jeremy House
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