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Why Is My Closing Delayed?

by Pat Wattam

Big question I get from buyers and sellers - Why Is My Closing DELAYED?!!!!  For a buyer, it is very frustrating as they have given the lender everything that was required at the beginning.  Now, it's time to get ready to move and they are asking for even more documentation!  And the buyer has to get an extension from the seller. What if the seller will not give them one?  What if the seller received an acceptable back up offer for more money or from a cash buyer?  Doesn't the seller have to extend since it's just a few more days?

First, the seller does NOT HAVE to extend.  I have seen it happen.  The seller is just waiting for the buyer to mis-step, ask for repairs, ask for extensions, etc so they can cancel that purchase agreement and go with a better one that they have received.  Buyer asks, doesn't the seller HAVE to let us know they have another offer.  That answer again is NO.  

As a buyer, what can you do to prevent delays?  I can't guarentee that you can prevent a delay to your closing but you can certainly hedge your bets by doing these items:

1.  Make sure your taxes have been property filed timely.  If you filed late, let your lender know up front BEFORE you write the offer, and see if that will pose any problems.  This is probably the number one reason a strong buyer has their closing delayed.

2.  If you have any issues that your lender sees up front BEFORE you write the offer, get those issues cleared up.  If you need a vendor to make corrections to your credit report, you are at their mercy.  They will get to it when they get to it.  They have no vested interest in doing it timely for you.  Get this done before before writing the offer on the house.

3.  When you do your pre-approval, see if the lender sees any potential issues that needs to be addressed up front.  

4.  Ask you lender how long they need to close the loan (another big issue - you need to know how much time your lender needs - don't assume they can get it done in 30 days).

5.  If getting a Rural Development loand know that they are always seeming to run behind.  Your lender can tell you how much extra time you need to add to make sure you don't have to ask for an extension later on.

6.  And perhaps, one of the best things you can do to make sure you close on time is selecting the right Realtor and have them recommend several lenders that they have had success with.

Call us today to help you purchase your home and close timely!

Other costs when purchasing a home

by Debbie Hanna

Once you’ve received a pre-approval letter from a lender, you are on your way to purchasing your new home!  You’ll know what type of loan best suits you and the down payment needed for that particular loan.  Your lender will also review the approximate amount of closing costs (lender fees, title co. fees) associated with your loan.

Did you also know that there are some “upfront” fees you will encounter before you get to the closing table?  These include payments for:

  1. Deposit
  2. Appraisal
  3. Inspection
  4. Prepaid year of homeowner’s insurance

These are just a few of the things we cover with buyers when we first meet with them in our initial Home Buyer consultation.  If you want more information, or would like to set up a meeting with a member of the Pat Wattam Team, please call us at 225-298-6900. We are here to help educate you about the process as you purchase your new home!

 

 

Debbie Hanna, REALTOR

225-298-6899

[email protected]

Why Should I Get Pre-Approved for a Loan?

by Pat Wattam

As a home buyer, here are a few reasons you should apply for a loan and obtain approval before you begin looking at homes:

1.  You will know in advance what your monthly payments will be.

2.  You won't waste time considering homes you can't aafford.

3.  You can select the best loan package without being under pressure.

4.  Sellers will view your offer more favorably if they know in advance of your ability to secure financing.

5.  Peace of mind!

Items Needed for Loan Approval

by Pat Wattam

Got these tips today from Andy Aucoin at Essential Mortgage.  Read all the way through.  When you are thinking about buying a house, the first step is to get pre-qualified.   We will find you the house that you want to buy.  Follow Andy steps below to understand what is next!  

From Andy: 

Here is a shorter list of items needed once you are ready to proceed with a pre-approval, NOT a pre-qualification, but an actual approval. Also, please make sure you read the Do’s and Don’t list below the checklist.

 Documentation REQUIRED for loan application:

 

It’s better to have it and not need it than to need it and not have it!

 

***Green highlights are needed to get me started on a preliminary approval for your loan. 

**Red highlights are needed once you have an executed purchase agreement. 


o    ***Most recent paycheck stubs from the last 30 days.

o    ***W-2 statements and 1099’s for last two years on all borrowers.

o    ***Last 2 years SIGNED tax returns – ALL pages, ALL schedules, K-1’s etc. (personal & corporate if applicable)

***If self-employed YTD P&L may be required. The tax returns requested NEED to be the ones submitted to the IRS.

o    ***2 most recent bank statements on ALL accounts- ALL pages even if blank. ALL Large deposits must be sourced

ANY DEPOSITS OTHER THAN PAYROLL WILL NEED TO BE DOCUMENTED?

o    ***Most recent quarterly statements on savings, 401k’s, stock, CD’s etc. (ALL pages)

o    ***Legible copy of driver’s license (s) For FHA, VA, Bond and RD, I also need social security cards.

 

Other information needed once you have a contract and or a refinance:

 o    **Name & phone # of your Homeowner’s Insurance Agent?  ______________________            

If you have any questions, please email me at [email protected]               

These documents are needed back ASAP to be able to start the process for approval.

***Important Note: Please be prepared if we happen to ask for additional documentation or clarification once your file has been processed and submitted. Your patience will be deeply appreciated by all of us.***

 

Pay Particular Attention to These Tips:

THINGS to DO and THINGS NOT to DO

Please carefully read the items below. If ANY of it pertains to you, please let me know upfront so that we can plan accordingly and not be surprised down the road when it may be too late. Many of the items such as credit, income, assets and employment WILL be verified again after loan approval. Better safe than sorry. Pay very close attention to how you sign the initial disclosures and final doc’s at closing. It needs to match your signature on your Driver’s License.

If you have ANY 2106 un-reimbursed business expenses on your tax returns, it is important for me to know early!

DO keep ALL accounts current (mortgages, credit cards, auto loans etc.)

DO contact me anytime a questions or concern arises.

DO keep copies of ALL paperwork with ALL pages of everything pertaining to your loan.

DO make sure to make ALL payments on ALL accounts on or before the due date.

DO have patience with me. It may seem that I am asking for your life history? I am only because I have to.

 

DO NOT make ANY large deposits into your bank accounts WITHOUT proper documentation.

DO NOT quit your job for any reason. Please call me to discuss any changes that may occur to your employment.

DO NOT allow anyone to make an inquiry on your credit report during the process of your loan.

DO NOT change Banks or transfer money within your accounts. If you do, a paper trail will be needed.

DO NOT co-sign for anyone, period.

DO NOT purchase a vehicle of any kind or take on additional debt.

DO NOT purchase any other real estate.

DO NOT apply for credit anywhere or complete any other credit application.

DO NOT charge any additional debt on any credit cards. That includes appliances, furniture etc.

DO NOT start any home improvements that are not a condition of your loan.

DO NOT max out your credit card limit. See below.

 

Factors that influence your credit scores are as follows:

  • Payment History (35%)

Delinquent payments can have a major impact on your scores.

First time delinquency can drop a score 100 points or more.

  • Amounts Owed (30%)

Higher credit utilization will negatively impact a credit score

  • Length of Credit History (15%)

The longer the history, the higher the score.

  • New Credit (10%)

High number of inquiries in 12 months is negative.

  • Types of Credit Used (10%)

Higher percentage of secured (versus unsecured) credit is better.

 

 

Andy Aucoin

Mortgage Loan Originator

NMLS# 83261 * NMLS# 80850

Essential Mortgage Company

3029 S. Sherwood, Suite 200

Baton Rouge, LA 70816

Phone: 225-297-7741

Direct Fax: 225-236-9133

Cell: 225-485-8433

Email: [email protected]

Apply on-line: www.essentialmtg.com

 

So, hope this helps clear up some of the confusion on getting your loan approved.  Call The Pat Wattam Team at RE/MAX First today and we'll help you get on the road to home ownership! 

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Photo of Pat Wattam Real Estate
Pat Wattam
RE/MAX First, Independently Owned and Operated
4750 Sherwood Common
Baton Rouge LA 70816
Office Direct: 225-298-6900
Office Main: 225-291-1234
Fax: 225-295-1234

RE/MAX First
Each Office Independently Owned and Operated
Main: 225-291-1234

Licensed by the Louisiana Real Estate Commission