One of the things we often hear about from clients when we discuss the mortgage contingency is, “I am pre-approved, so I am not worried about getting the mortgage”. Nothing can be further from the truth. Just because you have a pre-approval letter, in no way means that you will be guarantied a mortgage commitment, yet along that the loan will be cleared to close so you can buy your home. All it means is that based on basic information (as well as a few documents that you have provided your lender), you have met the initial stage on the road to trying to get a lender to provide you with money to purchase your home.
Along that road up until closing, you be asked for many documents as well as information, on multiple occasions. A good way to deal with this issue is to ask at that outset what documents you should be prepared to provide. This way you can try and have them readily available when the lender requests the same. We also would strongly recommend not sending anything unless it is done by a secured method. Many lenders will either have you reply to a secure email or upload the information onto a portal. If neither is available, we would suggest asking if the information can be faxed, mailed, and/or dropped off directly to the lender.
While it may feel that the information and/or documentation you are providing to the lender may be unnecessary or duplicitous, the fact is that if you do not provide such information, you may not get the loan. After all it is the lender’s decision as to whether or not to underwrite the loan. As such, we suggest trying to meet the lender’s requests in a timely fashion to better your chances of getting the loan and closing in a timely manner.
The information in this blog posting is for general information purposes only. Nothing in this blog or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information in this blog is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.