Early Preparation is the Key

It's the end of the month, the most exhausting time of the month for a Loan Consultant. Most people choose to close at this time to avoid prepaid interest, which reduces the total amount owed at closing. Some months are better than others, meaning, we have our approvals done and our closing packages are sitting happily on an attorney's desk, ready to transform into an accurate HUD Settlement Statement. However, there are other months that stand alone, that no one can explain. Loans are approved with conditions but the borrower simply can't find...whatever. Appraisals may come in short and the seller refuses to adjust the price, even slightly. Or the seller has tax liens and we cannot prove clear title. Or student loan creditors refuse to give that all-too-important deferment letter. And the list goes on.

But here's a tip. Gather everything upfront so that conditions are few. Here's a good generic list to get you started if you are doing FHA or any fully documented loan.

Remember the number 2.

1. 2 years of W-2s (most recent 2 years)
2. 2 paystubs (if you get paid once a month, 1 is sufficient) for all jobs
3. Most recent bank statements for the last 2 months
4. If you are self-employed, tax returns for the last 2 years
5. Landlord name and # for the last 2 years (or residential history for the last 2 years)
6. Employer name and number for the last 2 years
7. Go to http://www.getdownpayment.com/ and take the homebuyer's course if your organization uses Nehemiah. If not, this is still a great online class for the first-timer. Should not take more than 20 minutes.
8. IF you have student loans, make sure they are in deferment or you know the monthly payment amount. Sometimes credit reports are not accurate.
9. IF you have paid collections or judgments, also submit any payoff letters that you have
10. IF you have experienced a divorce, provide the decree. IF you pay or receive child support, provide the documentation that supports this.


This list will get you started. Ask your lender for a "checklist" of items that apply to your situation. This upfront preparation will make a world of difference in you loan experience.