Step Five - Submit Documents for Final Approval

 

Hey Folks! Thanks again for following on. I do want to apologize for a error I just noticed. Saturday's blog should have been step three (that's how I labeled it) but I wrote about step four. I was messing with the munchkins all day long just missed it. Again, I'm sorry. The good thing that while it is two separate steps, they could have be combined. So I guess a few goods things did come out of it. One, less to read for the same information and two, one less post I have to write. (While I really love this I am a little more than amazed on the time factor).

So now lets fast forward.............................................Step Five - Submit Documents for Final Approval

While in many ways this is the easiest part (at least when you get down to faxing, scanning, and emailing) but it may be the most critical part of the entire process. You see, up until now we have structured the new mortgage with values, income, assets, etc. that have been (for the most part) an educated guess. By the way, when you hear that a deal died in underwriting, unless the house appraisal or fraud is a issue, this is the reason.

Lets say during the initial interview the client stated they made $4,000 a month and had $15,000 in a 401k. OK, you being the good loan officer you are put it on the 1003, get the approval, send it to underwriting and they they loan gets denied for income ratios. Now the "bad" comes out in the loan officer, gets excited, calls/emails the underwriter, the underwriter's boss, the AE, the AE's boss, the loan officer's boss, and the owner of the company stating that the underwriter made a mistake and needs to approval the mortgage because you promised to closed that day. Sound familiar?

Now your office is not going to get anything done because of those "horrible underwriters" and the Investor is going to waste many hours to "get to the bottom" of this deal.

So now, time goes by and your boss gets the phone call. Some time goes by and your boss comes in and proceeds to tell you that the mortgage is dead because the client did not make $4k a month, pay stubs shows $3,625 and the client took a $8k loan against the 401K and has payments of $350 a month.

If you take nothing but this from my process basics, TAKE THIS. Verify, verify, verify, everything you send to underwriting. You ever hear "you only get one chance at making a first impression?" Lets go back to that first date I talked about. I am not saying that looks and dress are everything (on look at my earlier video blog will prove this) but it does help. These investors and underwriters are very busy and have strict guidelines to follow. Do yourself and them a favor (yea, it will get your mortgage application approved). Follow them. While every lender has their own process for submitting a deal to underwriting and yes, they are all different and two, they do not make any sense to you. FOLLOW THE GUIDELINE AND CHECKLIST. Don't forget you is King here and unless you want to lend the money for the mortgage yourself, follow the rules. Make a great first impression!

If you use just a couple of investors and the underwriters like the way you submit a file what do you think will happen after you put the  first couple into that investor? Exactly, your getting it now. The underwriter will jump to your file and find a way to get it done.

I have also heard that you should never do anything half-fast (wow, look at me and all these quotes today). So do it right or hire a processor to do it for you.

Remember, you are helping your client with the largest financial decision and process they will ever go through. You owe it to your client, your company, your investor, your self, and your family to check and double check before you submit the documents for final approval.

Now after you send in the docs. You will get a stipulation report from the investor. The better the package you submit for approval the fewer stips you will have to fill. When you get the stips use the same philosophy that you use with your client. "Don't fight' em, write' em (boy I am filled with' em today?). If you need to, call or email for clarification, just fill them quick and get the mortgage closed.  

Happy Selling!
Tony Grego - Indiana Mortgage Broker 
 
Quote of the Day:
A new study shows that licking the sweat off a frog can cure depression. The down side is, the minute you stop licking, the frog gets depressed again.
--Jay Leno