Buying Your First Home in Nashville? Check in with Your Lender for Step 7
STEP ONE of this series for the first time home buyer in the greater Nashville area was about finding a lender and getting yourself pre-approved for a loan (if you aren’t going to pay cash).
STEP TWO of this series for the first time home buyer in the greater Nashville area is how to select a realtor.
STEP THREE of this series for the first time home buyer in the greater Nashville area is finding, viewing and selecting your home.
STEP FOUR of this series for the first time home buyer in the greater Nashville area is making an offer.
STEP FIVE of this series for the first time home buyer in the greater Nashville area is the home inspection process.
STEP SIX of this series for the first time home buyer in the greater Nashville area is selecting the appropriate homeowner’s insurance policy.
At this point in the home buying process, you are getting very close to the finish line!
You are likely feeling exhausted from this whole procedure. You may be thinking that you aren’t even sure if you are doing the right thing at this point. Or you may be feeling the exact opposite – elated, antsy and ready to move in to your first house! You may even be feeling both ways at the same time! This is completely normal. You are on the roller coaster ride that is the first time home buying experience.
Now it is time to check back in with your mortgage lender. Ask as many questions as you need to and be sure that your lender has everything that they need from you. They will begin to really “bug” you at this point. They will have endless requests from you at the 11th hour. Why is this?
The reason for all of these requests is that the loan has been submitted to the underwriter. The underwriter is the final person who is going to either approve or deny your loan. They are reviewing your file with a fine-toothed comb. They are looking for anything which is a red flag. When they see those items, they will need to verify what the situation is. As an example, let’s say you received $30,000 in an inheritance a few months ago. They will want all of the documentation verifying that the money did come from an inheritance. They are required to follow through and double/triple check any item which is outside your normal income level.
Therefore, get ready to submit W-2 forms, pay stubs, bank account statements, tax returns, IRA’s and any other retirement account statements. Basically, any money that you have (in any form), the underwriter will have to dig through and figure out where it all came from.
When you are approaching the closing date, the mortgage lender may want you to update some information to ensure that it has not changed. This is why it is important to neither spend nor receive a large amount of money during the contracted period. This could make you appear “unstable” to the underwriter. Most of my clients think it’s funny (and I do as well) that instability can come in the form of having more money than you normally have.
Keep plugging through, give the underwriter the information that they need, no matter how annoying! You are very close to moving into your first home!