When preparing to buy a home there are many things to consider. Most of the time, compiling documentation for your lender is not at the top of the list. This could be a very important step to the overall success of your home-buying experience.
Please read on.
If you haven’t done so already – please begin compiling documentation we’re going to need once you’ve found your dream home. For a specific list of what we will contact one of our loan officers today!
Partial List of Starter Documents:
- Copies of last two years tax returns and W-2′s
- Copies of two most recent paycheck stubs (or easy, quick access to future pay stubs)
- Copies of bank and brokerage statements for the last two months
Why Bother Digging Up Documents Now – I Haven’t Even Found My Home Yet?
Because, in the mortgage business Time Equals Money. I’ll explain what I mean below.
What Does It Mean To “Lock” Your Loan?
When it’s officially “go time”, you are going to “lock” your loan program with the lender. In turn, the lender is setting aside the funds allocated to your home mortgage. Lenders take these “loan locks” very seriously – as it helps us manage supply and demand.
Generally speaking – the shorter a time period you lock up a lender’s funds, the more preferential the pricing that lender will offer in return. This is huge.
What Do I Mean By the Statement Above?
Typically lenders offer “lock periods” of 30, 60 or sometimes even 90 days. By locking your loan, you benefit from knowing that if mortgage rates rise in the future, your terms will remain unchanged by the lender. As a result of this commitment the lender makes to you, they provide financial incentive for you to choose a shorter lock period than a long lock period. Does this make sense so far? If you are interested in learning more about how Time Equals Money in the mortgage business, contact us today!
So, Is My Ultimate Point In All This?
It is difficult to know if it is going to be prudent to choose a short, medium or long “lock period”. However, if we ultimately determine that a short lock period is best for your situation – it will be critical that we don’t lose even a single day while the clock is running.
By getting your mortgage ducks in a row now, we will be in optimal shape for a smooth and cost-saving mortgage process later.
While some lenders take 60-90 to close your loan, MIG will get it done on your schedule and close on time, every time.