Ways to avoid problems with an Atlanta mortgage

Atlanta Realtors and homebuyers alike are always looking for ways to speed up the mortgage approval process.

Judy Jones, Vice President of Metro Brokers Financial, has several recommendations on how to avoid any complications.

1. Make sure the loan officer has the final sales contract with all changes or additions. Buyers often turn in the initial sales contract when they apply for a loan. However, if the price has been renegotiated (even one dollar), it can change the type of loan, interest rate, documentation required or whether or not the buyer qualifies for the loan. The final sales contract should be given to the loan officer as soon as it is approved by both the buyer and seller.
2. Ask buyer to be upfront and honest about their finances. If a buyer is not honest about their credit or work history, it only slows down the process. For example, if a buyer has had a bankruptcy in the past or plans to use money from their parents as a downpayment, they should tell the lender so they can find the right loan for their needs.
3. Prepare seller for a call from the appraiser. Clients need to be aware that an appraisal must be done on the property in order for the buyer to get approval from the lender. The seller will need to make arrangements for someone to be at the house to give the appraiser access to the interior and exterior of the house.
4. Ask buyer to provide documents needed by the mortgage company in a timely manner. If a lender calls and needs more support documents (i.e., pay stubs, bank statements, work history, etc.), remind clients that it’s a normal part of the mortgage approval process and to turn in the documents as soon as possible. If a lender is missing documentation, the loan cannot move forward in the approval process and will take longer to close.
5. Ask seller to contact their current lender and request a pay-off for closing. Some lenders prefer to talk to the seller directly about a pay-off. This also allows the lender to focus on getting loan documents together for closing.
6. Ask buyer to purchase the required homeowners insurance. The buyer must give the lender proof of a homeowners insurance policy in order to close. This must be done prior to the closing date because the lender needs time to set up escrow accounts.
7. Once the loan is approved, remind the buyer of how important it is not to do anything to change their financial situation, such as buying a car or expensive furniture on credit. Lenders will routinely run another credit check just before they issue the mortgage money to close the sale. If this last minute credit check turns up a "red flag" (credit checks by other creditors), it could change the status of the borrower's loan commitment causing the mortgage not to close.

Call Metro Brokers Financial at 404.847.2525 for more helpful tips.