Sedona Lender Tips
Apparently money doesn’t grow on trees! After the recent credit crunch, financing real estate transactions has become one of the most difficult tasks in the world. Or at least that’s what the media would like you to believe. Instead, the importance of having a knowledgeable and competent lender has never been greater. That should be easy to find, right? Well, we have a few tips to help you out…
First off, Get Pre-Qualified Early
Financing is available, but you have to fit into the much more strict guidelines to qualify. As part of our contract process it is required to submit proof of speaking with a lender. Why not start the process before you start looking. It will help you know you budget and save you time searching for things above or below your comfort level.
Interview Multiple Lenders
You are shopping for a “product/service” when you are applying for a mortgage. Look around and compare. Recent regulation changes have made this easier, but make sure you are comparing apples to apples. Also, don’t just think where you hold your bank accounts will give you the best deal.
Lenders are requiring more paperwork than ever. You will be asked to pledge your first born child to qualify. They may even come back and ask for your second…but in all reality there may be instances where more information is needed. Do not let this upset you. Provide the items they are requesting, knowing in the end this will help you acquire the Sedona Home you have found and decided to purchase.
Don’t Let Everyone Run Your Credit
One way to negatively impact credit score is to have multiple inquiries as to your credit worthiness. When applying for a home loan remember that there is a small window when everyone checking your credit, within this window, counts as only one inquiry. Verify the length of the window with the lenders that you interview. Note: If possible know your credit score prior to interviewing with lenders; therefore, they will be able to ballpark their mortgage quotes without having to run your credit until the very end.
Characteristics of a Good Lender
Obviously honesty is the most important, but the following characteristics are what we feel the lender should demonstrate when handling our application process.
While the application process may require additional information, a good lender will anticipate future requirements and will compile a list of items to obtain in lieu of piece milling item by item.
Availability & Promptness
Questions will undoubtedly arise and obtaining satisfactory responses in a timely manner may ease the stress of the application process.
The best way for you to obtain the best pricing for your mortgage is to have multiple avenues for lenders to place your application. A good lender will have the option to place a mortgage within his or her own establishment as well as the flexibility to tap into other mortgage products from other lending institutions if your requirements/requests dictate. Remember more options equal better pricing for you.
Ability to Perform
The most frustrating aspect of the mortgage process is to comply with all of the requirements of the application process but in the end find out that you are still unable to qualify for whatever reason. The lenders knowledge of the mortgage market is paramount to avoid frustrating conclusions such as unable to close on your Sedona Real Estate Purchase. Realistically the best way to find out if your lender is able to consistently perform is to seek referrals for lenders with this characteristic.
Prepare for Paperwork
Below is a Needs List of typical items a Lender will require:
- 2 Years Tax Returns
- 2 Months W-2
- 2 Months Bank Statements - All Pages
- Letter From Accountant
Keep in mind that this is not a complete list, contact a lender for a more detailed list of needed items.
Are You Worried about your Credit Score? Click Here for a few Credit Tips to keep your scores high during the mortgage application process.
Buying Investment Property?
Currently some Sedona Rental Properties are Cashflow Positive. Contact Us if you are interested in seeing what's available for your portfolio.
Remember investment mortgages are difficult to obtain, BUT IT IS NOT IMPOSSIBLE. Check with a lender to discuss your options.
Another helpful link is the AZ Landlord Tenant Act. Check out this document if you have any questions regarding leasing your new Sedona Property.