Mortgage Loans: Don’t Hide Facts
When applying for a mortgage loan, the lender will ask you to fill out an application and provide supporting documentation. It is important that you review what is being asked for and supply all of the requested information. If you cannot supply something, explain to the lender, in writing, why it cannot be supplied. Lenders make lending decisions based on a compilation of facts gleaned from the material requested. They will not miss the fact that something is missing and approve the loan anyway. If something is missing that is not supplied after a few requests, the lender will simply put your file into the declined pile and move onto the next file that is complete.
While you might not fully understand why something is needed, it is up to the lender to make that decision. Very frequently, borrowers come to RFG with a contract of sale that has to be closed on within a very short amount of time. We are happy to work with these borrowers, but frequently, we are asked to make assumptions that we cannot make. It speaks volumes to a lender when it receives a complete loan package, and conversely, when they receive one that is incomplete, or does not make sense.
In these days when mortgage loans are hard to get, put yourself in the best possible position by giving your lender all of the information they ask for, even that which does not put you in the most positive light. Frequently, there are good explanations for negative issues, but you need to give your lender the opportunity to understand the issues and the explanation. When a lender thinks you are not being forthright with them, it makes it difficult for them to approve the loan. Lay all of your cards on the table, you may be pleasantly surprised when your loan is approved!