The mortgage crisis that fueled panic and financial upheaval begin sweeping through the US and world in 2007. At the heart of the problem was a combination of loose lending guidelines and the assumption that home values would continue to increase. Over the next several years, mortgage professionals and consumers would see an avalanche of new regulations and laws regarding issuing mortgage loans.
“New laws have made it very important for a consumer to choose working with a professional who can guide and educate them through the process,” said Traci Lynn a mortgage professional in Atlanta. “Consumers should get pre-approved prior to shopping for a home and even get pre-approved if they are currently selling their home.”
Traci’s background is very extensive. She has held positions in compliance, closing, processing and even underwriting during her career.
“I believe that the four years I spent as an underwriter gives my clients an advantage in getting their loan approved,” said Traci. “My strength is putting the transaction together for approval, and educating the borrower on exactly how the process will work and ensuring there are no surprises.”
For the majority of Americans, they may only apply for a mortgage three to five times in their lifetime and prior to the financial crisis lenders seemed to be approving loans with little to no documentation. For consumers who obtained financing prior to 2007, getting a mortgage required less documentation than it does today.
Traci has outlined six areas that consumers must know about applying for and obtaining a mortgage. Traci’s advice is as follows…
1. Research the area in which to live and decide what is a comfortable monthly payment. Take into consideration if there is a homeowners association and what dues are required. Also consider the schools, traffic, property taxes and commute.
2. Decide on a reputable lender and provide them with all necessary financial documents at the time of loan application. With a complete file, a qualified loan officer is in a better position to give the client reliable advice.
3. Understand that the underwriter is always going to ask for additional documentation. Be prepared to provide it quickly and make sure that the mortgage specialist provides details of the timeline for closing. For example, ask if underwriting going to take 2 days to look at your file or 7 days. This is especially important for a purchase transaction. Be able to accommodate all the dates in the contract.
4. Prepare in advance for the move. Secure homeowners insurance, utilities and moving company early in the process because timing is critical in purchase transactions.
5. Don’t do anything to affect credit during the loan process such as opening new accounts, buying a car or furniture. Doing so can result in additional debt that may affect the ability to qualify.
6. Be sure to discuss with a mortgage professional when planning to move large amounts of money around from account to account, or if being gifted money. Regulations require all funds be sourced and it will add to the paperwork process.
“Buying a home is an emotional process. I work hard to ensure that my clients don’t make mistakes such as over-buying. I want to empower my clients through education. Some people still believe you need 20% down to buy a home, but that’s not necessarily the case. There are several loan programs that offer down payment assistance or significantly less down and I feel it is my job to make sure the client knows their options. You should expect your loan officer to be with you every step of the process and be able to answer any questions that you have in a timely manner,” Said Traci Lynn.
Additional information about the mortgage process can be found by calling Traci at 404-974-5202.