Dealing with mortgage conditions

Time is of the essence.

Whether you are looking for a mortgage pre-approval, have an accepted offer on a home or are in the middle of refinancing, we are generally working towards meeting a deadline whether it is a financing subject removal date or an upcoming renewal date.

I feel like mortgage professionals all have their individual styles and processes as to how they work with their clients.

One of the things I’ve learned over the years is the importance of gathering my clients’ documents upfront and reviewing them thoroughly. There are times when a client calls with an accepted offer, so we are starting a little behind with respect to document collection.

Another of the things I’ve learned over the years is regardless of how thorough I try to be when collecting and submitting clients’ documents to lenders, there are often additional requests for clarification that come from the lender.

Hands-down, I feel like organizing and sending your paperwork to your mortgage person is the most frustrating part of the process for clients.

So what can you do to make that smoother?

First, if you receive a list of required documents please provide them all. Take a minute to confirm your documents clearly show your name and account number if applicable. Send all pages of the documents. Don’t guess at the pages you think the lender needs.

There are reasons lenders need specific documents and information. They are doing their due diligence to do their best to avoid mortgage or identity fraud. They want to make sure you truly have the capacity to make your mortgage payments.

Most days, I spend time explaining to my clients why we need particular information and documents and help them access and submit them. If paperwork is not your forte, I completely understand the frustration as you do your best to send your information. Even if paperwork is your forte I get your frustration.

Why is there such a high level of due diligence on our parts?

I recently had a chat with a friend that works at a TD bank branch. Because of the $3 billion fine TD was handed in the U.S., its mortgage rates are suddenly a wee bit higher and they don’t have the same wiggle room they did earlier in the year. This is also due to the mortgage interest rate environment overall. However, when huge fines like that cut into profitability, the loss has to be covered from somewhere.

Thorough document review and multiple ways to verify information feel like a pain, if those steps help identify potential money laundering or fraud it will save us all as consumers from higher interest rates and even stricter lending guidelines.

Its important to understand, when you feel like the paperwork is driving you crazy and if you are having troubles finding the necessary paperwork, pick up the phone and speak to your mortgage professional. There may be alternate ways to access or confirm the same information.

The more organized you can be with your paperwork, the smoother your mortgage approval will be.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.