A common complaint as I help buyers through the process is “the lender won’t stop asking me for stuff!” I’m here to help you be less stressed by accepting this reality in advance. They’re going to ask you for a lot of stuff.
You’re asking for the lender to give you several hundred thousand dollars of their money. If someone asked you for several hundred thousand dollars and said they’d pay you back sometime in the next 30 years, you would have lots of questions, too!
And we should be glad they do ask so many questions, because when they stopped asking questions we got 2008.
So, here’s what you can do to help lending move along smoothly.
- Furnish documents to the lender promptly when asked for them. Sometimes you’ll give them something, like a bank statement, which will prompt them to ask you for another document. For example “This large deposit in your account seems out of the ordinary. Can you help us track it?” Answers to one question often dredge up more questions, yet another reason not to dilly-dally on getting them things.
- Be ready to open up your financials. It may feel weird to talk to a virtual stranger about your debts, assets, income and credit score. But that’s part of the deal. And they’re going to go through it with a fine tooth comb. You don’t have to like it, but if you want the loan you do have to do it.
- Be honest with your lender. They’re here to help you get to the closing table. And if you aren’t, they’ll find out eventually anyway, so better to get it all out on the table up front.
- Talk to your lender before spending large sums or opening new credit cards or accounts. Don’t lease a new car or buy furniture before closing. It could disqualify you for your loan.
- Talk to the lender before accepting large sums of money. Any deposits that don’t fit into your normal income patterns need to be “sourced” meaning you need to be able to explain where they came from. To make sure this won’t cause you a problem, talk to the lender before depositing large sums.
- Don’t change jobs, get fired, or quit your job in the middle of the transaction. This, too, might disqualify you for the loan.
Got it? Follow these rules, and you’re gonna have a good time.