Cake and an accurate mortgage application!
Today I would like to share a little bit about the importance of an accurate loan application. A loan application is basically the recipe to bake a cake. If you follow the directions (Fannie Mae guidelines for Fannie Mae loans, VA for VA loans, FHA for FHA, etc.) you end up with something predictable and tasty. The problem that arises is that the directions for the loan application are typically 300-1500 pages per loan type.
So as a loan applicant your in the kitchen with a loan originator making your cake! How do you handle this? Well, the simplest way is to used an experienced loan originator like myself and to be completely upfront with your situation. Include all employment even self employment that may be mostly inactive or losing money. It is really hard to make a cake unless you have all the ingredients on hand.
This is especially true for time sensitive loan modifications and purchase loans. Yes, it is only thirty minutes to go to the store to pick up birthday candles for the cake and that’s just fine, but errors or omissions on a loan application can take days to document and time is precious when earnest money or your very house is on the line. On loan modifications, many lenders take 30-90 days to review your application, and another 30-90 days to review anything missing. Of course, by that time the original documents are outdated and they need everything replaced….
So, remember to bring all the ingredients with you whenever you bake a cake or fill out a loan application! Until then, here’s my favorite cake and some food for thought!
