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Three Tips for a Smoother Home Loan

By W. Todd Galde

"Smooth Loan Process" doesn't have to be an oxymoron.

It is true. You have heard all the rumors and the fact is, getting a home loan these days can be stressful. There are so many additional steps and processes for verification, brought on by new regulations after the financial crisis of 2007-2008. The investors that are ultimately buying the new loan want to know that you can afford it and will make the payments every month. There are new rules and organizations in place with funny names and acronyms like Dodd-Frank Act, CFPB, QRM, S.A.F.E., CD, and LE. Mortgage Lenders have to follow these rules or else pay hefty fines.

Fortunately, there are ways to help ease the stress and frustration associated with getting a home loan these days. Here are three simple tips to aid in making the process more smooth, efficient, and timely...

1. Prepare Your Documentation Ahead of Time

Before engaging a seasoned loan advisor to begin the application process, take the time to gather up the basic items that every lender will most likely require. This list includes the following documents:

  • Two years’ of W2’s
  • Two years’ of personal tax returns (if self-employed, add business returns)
  • Two months of pay stubs
  • Two months of bank statements
  • Copies of ID forms such as drivers licenses, green cards, and travel Visas

These are the basic needs that your lender will require and there will be more but coming to the initial application phase with this information in hand will make for a cleaner start to the process.

2. Know Your Credit Profile and Status

Before meeting with a seasoned loan advisor you should visit www.AnnualCreditReport.com and download the report from all three bureaus, Experian, Trans Union, and Equifax. You will want to know if there is anything on your credit that is a surprise to you, such as medical collections, unauthorized inquiries, or potential identity theft. Also, you will want to review any legitimate derogatories like late payments in the past due to financial struggles so you can explain the situations to your loan advisor. When meeting with your loan advisor for the first time, be sure to ask whether any negative items can be removed or fixed. You will want to work with a knowledgeable home loan advisor who has experience repairing credit for clients.

3. Be Responsive and Demand the Same from the Loan Advisor

During the course of the transaction your loan advisor will need many additional items on top of what you have already provided. Be sure to respond to those questions or needs in a timely manner without letting more than 10-12 hours go by before responding. Ideally, no more than 2-3 hours is best.

Conversely, demand that your loan advisor offer you the same courtesy of being ultra-responsive to your questions or concerns. You will have questions, for sure, and you deserve speedy answers, hopefully before the sun goes down so you don’t have to lose valuable sleep worrying. It’s important to remember they your loan advisor is working for you, not the other way around. Take control of your loan and be diligent when communicating.

Advisor for life,

W. Todd Galde - Sr. Mortgage Advisor
Commerce Home Mortgage
Direct/text: 925-381-8190

Advising. Smart. Financing.