The mortgage process is infinitely more complex than it was even five or ten years ago. The level of documentation that is now required, and the scrutiny that the documentation undergoes, is staggering, and rightly so, as mortgage fraud is rampant, despite industry efforts to combat it.
Respond Quickly to Requests
The best thing you can do to keep the process moving is to promptly respond to whatever requests your lender makes of you. Whether it’s a piece of documentation or perhaps a letter explaining some aspect of your mortgage application, you should respond quickly. Chances are it’s urgent.
Your lender needs this level of detail because it’s more than likely that your loan will be bundled with other mortgages and sold to investors and perhaps to other investors after that. If your current lender fails to provide thorough documentation, or misses something in the underwriting process, your mortgage might not be able to be sold to investors. This would be a major issue for your lender, as he or she could incur large losses.
Everything in Its Place…Or Your File Sits
Another reason to be particularly cooperative in dealing with your lender is that, to minimize the need to review files several times, most underwriting departments will only examine files when all of the conditions have been provided. If the underwriter is looking for five items and you provide four, the file will sit until the fifth item is provided. What are called “underwriting gatekeepers” ensure that all is in place before the file moves forward.
Your mortgage professional is like a middleman between you and the underwriter. It’s up to him or her to get your information to the underwriter. Everything he or she requests has an important role within the process.
And it’s important to keep the process moving. For your own sake.