Here’s How My Clients Beat The Clock By Preparing Ahead
Do you remember the story: The Little Boy Who Cried Wolf?
I have to admit – sometimes I feel as if some of my clients view me as the little boy from the story when I’m repeatedly and passionately asking them to prepare early for the mortgage process ahead.
I’m sending this email to explain how this preparation can make a tremendous difference. Please read on.
If you haven’t done so already – please begin compiling documentation we’re going to need once you’ve found your dream home. For a specific list of what I’ll need, please contact us. Thank you!
Partial List of Starter Documents:
- Copies of last two years tax returns
- Copies of two most recent paycheck stubs (or easy, quick access to future pay stubs)
- Copies of bank and brokerage statements for the last two months
Why Bother Digging Up Documents Now – I Haven’t Even Found My Home Yet?
Because, in the mortgage business Time Equals Money. I’ll explain what I mean below.
What Does It Mean To “Lock” Your Loan?
When it’s officially “go time”, you and I are going to “lock” your loan program with the lender. In turn, the lender is setting aside the funds allocated to your home mortgage. Lenders take these “loan locks” very seriously – as it helps them manage supply and demand.
Generally speaking – the shorter a time period you lock up a lender’s funds, the more preferential the pricing that lender will offer in return. This is huge.
What Do I Mean By the Statement Above?
Typically lenders offer “lock periods” of 30, 60 or sometimes even 90 days. By locking your loan, you benefit from knowing that if mortgage rates rise in the future, your terms will remain unchanged by the lender. As a result of this commitment the lender makes to you, they provide financial incentive for you to choose a shorter lock period than a long lock period. Does this make sense so far? If you are interested in learning more about how Time Equals Money in the mortgage business, I’m happy to educate you – just give me a call!
So, What Is My Ultimate Point In All This?
Today, you and I are not sure if it is going to be prudent to choose a short, medium or long “lock period”. However, if we ultimately determine that a short lock period is best for your situation – it will be critical that we don’t lose even a single day while the clock is running.
Do not make the same mistake so many home buyers have made in the past. When and if I ever tell you that a wolf is coming – I really mean it! By getting your mortgage ducks in a row now, we’ll be in optimal shape for a smooth and cost-saving mortgage process later.
Thanks for reading this! And for allowing me to be of service.