Many financial planners are counseling prospective home purchasers that there is no better time to get a mortgage than now. Yet, at the same time, there is also considerable information reported regarding the challenges to obtaining a residential mortgage in the current economic environment.
James Whitehouse, Senior Vice President, Residential and Multi-Family Mortgage Lending, Suffolk County National Bank states that there is actually good news for prospective home purchasers and current home owners looking to refinance. In fact, Whitehouse says that it IS a good time to get a residential mortgage –rates are low, and there’s money out there to borrow. And, it’s not really that challenging to obtain your residential mortgage. With a little preparation, the process is pretty painless.
Whitehouse commented, “We do have to accept the reality that more documentation is required of mortgage applicants by all residential mortgage lenders due to increased regulatory requirements. But, the documents that are required are readily available, and if you commit to providing them timely, your lender can assist you through the efficient processing and closing of your home loan.”
Here are a few steps that Mr. Whitehouse feels are especially worthwhile in making the process easier. Review the steps and information required. Your mortgage officer will provide a checklist, which will keep the process on track. Get a copy of your credit report. Your credit score may impact your rate and loan costs. If there are inaccuracies in your credit report, you will want to correct them ahead of applying for a mortgage loan.
Know that you will have to document your income. If you are self-employed, you will be provided with information regarding how self-employment income is calculated. Determine how much money you will be putting down as a down payment and be prepared to document the sources of funds for your down payment. Use an attorney that specializes in real estate, in the area of your home purchase. Other resources that are available to you are your local realtors and your mortgage officer.
Whitehouse concludes, “The fact is, banks are eager to lend. Many banks will work with qualified clients to provide a residential mortgage with terms that facilitate the clients’ personal financial plans. For example, at Suffolk, in many cases, we are able to coordinate an amortization term that works best for the home buyer. Regardless of the bank you choose for your residential purchase or refinance, make sure that there is a knowledgeable mortgage officer assigned to you. That will make a big difference in making your home purchase a superior experience.”
James R. Whitehouse