What is a Loan Officer?

A Loan Officer is your trusted guide through the lending process, serving as the essential connection to securing the financing needed to acquire your next property. As you embark on your journey to homeownership, your lender will meticulously review your financial details and may request additional documentation, even as you approach the final stages of your closing.

To ensure a smooth and seamless process, it’s crucial to only provide the exact documents requested, avoiding any unnecessary information.

Here are the key documents you’ll typically be asked to submit:

• Valid Identification: A government-issued ID to verify your identity.

• Social Security Number (SSN): For identity verification and credit report checks.

• Proof of Employment: Recent pay stubs or a letter from your employer confirming your income.

• Bank Statements: To demonstrate your financial assets and available funds.

• Tax Returns: The most recent 2 years of tax returns for an accurate assessment of your financial history.

By providing these requested documents in a timely manner, you ensure that your financing process remains efficient and on track for a smooth closing.

Choosing the Right Lender:

Key Questions to Ask

Finding the right lender is a crucial step in your home-buying journey. To ensure a seamless process and secure the best loan terms, it’s important to ask the right questions. Here are some questions to guide your conversation with potential lenders:

What are your typical working hours?

If you have an unconventional work schedule, such as working at a bank or serving in the military, the traditional 9-5 might not be ideal for you. If you're self-employed, traditional office hours may work perfectly for your schedule.

What fees do you charge for your services from start to finish?
Lenders dedicate their expertise to finding the right loan for you, so it's only fair they are compensated for their hard work.

• Some lenders charge a percentage of the purchase price.

• Others may charge a flat fee for their services. Be sure to ask for a clear breakdown of all costs.

What options do you have for Veterans?
If you're a veteran, inquire about special loan programs or benefits available to you.

Based on the documents I’ve submitted, which loan program do you recommend for me?
Your lender will tailor their recommendation based on your financial information and needs.

Are there any special assistance programs that I could apply for?
Ask your lender if you qualify for programs such as First Time Home Buyer assistance.

• Some programs may offer down payment assistance, grants, or lower interest rates.

Will I need to pay back any of the assistance money?
Sometimes you may need to repay the assistance within 2 to 3 years, or only when you sell the home. Confirm the terms with your lender.

Does my pre-approval letter expire?
Pre-approval letters have an expiration date.

• You may need to re-submit some documents, like bank statements or pay stubs, to keep your pre-approval valid.

How long is my rate locked in for?
Ask when your rate gets locked in, and how long it will remain fixed.

What is a buy-down?
A buy-down allows you to lower your interest rate by paying upfront.

• Ask about the requirements, costs, and whether it would benefit your long-term financial goals.

After Choosing Your Lender

Once you’ve selected your lender, it’s crucial to respond quickly to any requests for documents. Missing even one document can delay your closing and jeopardize the opportunity to purchase your home.

Important: Once you're pre-approved, avoid the following:

• Do NOT make any new purchases with credit.

• Do NOT dispute any items on your credit report.

• Do NOT change jobs, quit your job, or go self-employed.

• Do NOT co-sign on any loans.

• Do NOT make large cash deposits without your lender’s prior approval.

• Do NOT get married or divorced during this process, as these life changes can significantly affect your loan approval.

Your lender will review your information multiple times, even as you approach closing. Ensuring all documentation is submitted promptly will help keep the process on track and prevent unnecessary delays.

By staying on top of these steps, you’ll be well on your way to closing your dream home with confidence.