The Loan Approval Process

You've just dropped off a filing cabinet full of papers at the lender's office, and you get a phone call asking for a few more boxes of documentation.

Welcome to the meticulously detailed world of the "Loan Approval Process".  You're starting to feel that the loan officer has a love of paper, which is somewhere between mildly perverse and openly masochistic.  Stop!  Don't take anything about this loan process personally.

The plain fact is lender's require large amounts of documentation on a mortgage loan.  Your employment history, credit rating, recent financial transactions - all of these must be carefully verified.  If last month's Visa payment was late, they might ask for a letter of explanation.  If you have your own business, tax returns for at least the past three years will be requested.  And they'll probably want a year-to-date profit and loss statement, too. 

It's not that they lack faith in you, it's "The Process" - their regulations demand that they document everything.  That loan officer with the thing for paper may know that you're a safe bet, but the underwriters have to be sure that every loan they make can withstand the scrutiny of federal auditors and bank examiners.  The have an excellent web site that will answer a lot of your questions.

Amazing as it may seem, everyone who owns a home has been through this harrowing process and survived - You are not alone!


Jo-Anne Larre

Jo-Anne Larre

CENTURY 21 Fusion
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