Mortgage applications can be a daunting task for some people simply because there is so much money on the line. Lenders have organized the mortgage process to collect proof that shows the borrow can and is able to repay the loan in a timely manner. This is one of the most important parts of buying a home and where a buyer’s agent can really help the process move smoothly. Here are a few things all mortgage brokers need from the buyer’s agent.
#1. Transaction Details
The buyer’s agent will need to provide the mortgage broker with all of the transaction details such has the contract price, contract due diligence date, any contingencies, etc. This can be easily done by providing the loan officer with the most recent copy of the purchase contract. The mortgage loan process can’t be completed smoothly without all of this information. This information also needs to be highly accurate to ensure there are no discrepancies that prolong the loan process.
The buyer’s agent can also help by reminding their clients to gather the following documents that are necessary for a mortgage loan:
➔ Tax returns give the lender a full picture of a potential buyer’s financial situation
➔ Pay stubs, W-2s, or other proof of income help mortgage lenders gauge current earnings
➔ Bank statements allow lenders to make sure the buyers have several months’ worth of reserve mortgage payments in their account in case of emergency
➔ Credit history is necessary to assess the borrower. Lenders will pull a credit report with a potential buyer’s permission. If there is negative information in the credit report, a statement that explains negative items may be needed.
➔ Gift letters should be provided if the buyer received gift money. A written confirmation that the money is a gift and not a loan will be needed.
➔ Photo ID to prove identity
These are all items that a real estate agent should inform the potential buyer they may need to provide to the mortgage lender. A real estate agent will be able to assist in areas such as how to explain dings on credit reports and can work one-on-one with the mortgage lender.
#2. Consider a Cover Letter
A good tip is to create a cover letter that includes all of the client information and the deal information in one place when you send it over to the mortgage lender. This can help speed up the process since all of the data needed to process the loan will be in one place that is easily accessible. One of the most important factors in a successful home purchase is ensuring that you obtain a mortgage loan and that all of the information is accurate and that communication is maintained.
#3. Maintain Healthy Communication
A mortgage lender will need to have many different ways to communicate with the buyer and the buyer’s agent. Ask the loan officer what the best way to communicate is with any changes, whether it is email, phone calls, texting, faxing, etc. Make sure as the buyer’s agent you keep the communication flowing and running smoothly.
The mortgage lender, buyer, and buyer’s agent all need to be on the same page and up-to-speed on how the process is progressing. Set a certain day of the week that you will send a state of the union type email to all of the parties, including the buyer, mortgage lender, seller’s agent, etc. to keep the lines of communication open.
The home buying process doesn’t have to be long, drawn out, and stressful. If the buyer’s agent provides the mortgage broker with the most up-to-date information on a transaction and continues to communicate effectively, the mortgage loan process will run smoothly.