Tips to Remaining Calm During the Loan Process
Stress is a buzzword these days. It seems like each month a new study comes out confirming that stress contributes to a variety of mental and physical issues such as high blood pressure, anxiety, insomnia and premature aging. Aside from the obvious "life or death" scenarios one might encounter once in a blue moon, it's everyday situations such as job interviews, sickness, family decisions or financial hardships that really "stress" us out.
It's a common statement that buying a home is one of the biggest investments a person will ever make so it's no surprise that it is an event that often causes a great deal of stress. Add to the fact that most people need financial help via a mortgage loan and suddenly, you are not only dealing with the stress of picking the "right" home but also qualifying for financing to make it "your" home. And just when you think the stress is over, rates drop and your in the market to refinance and go through the loan process all over again.
If you can relate and it looks like you might be looking to buy or refinance in the near future, here are a few tips to help you keep you cool through the loan process.
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Start Planning Early
Getting ready for the loan process is one of the best ways to avoid common stressors. Planning for loan requirements and getting your financial profile in order will make your life easier when it comes time to move forward. We recommend speaking with your mortgage professional right away to get an idea of what will be required and how to improve your chances of securing financing. This can also help you avoid issues that often cause unneeded stress including:
- Credit Report Errors
- Missing Documents
- Un-filed Taxes
- Inconsistent Work Hours
- Larger-than-Usual Expenses
Be Upfront & Honest
Once you are ready to move forward and speak with your loan officer, make sure you let him or her know about any unusual circumstances right away. The loan process will go smoother if you are upfront about issues that may require explanation to the lender. It is much better to have a strategy based on all of the facts from the start than to scramble in the middle of the process. Be sure to discuss the following issues with your mortgage professional:
- All Bankruptcy, Foreclosures or Shortsales
- Any liens associated with your property
- Inconsistent employment
- Write-off amounts (if your Self-employed)
- Changes in your income or expenses over the last 2 years
- All irregular deposits in your bank account (they will need to be explained)
- Recent credit inquiries
- Number of rental properties
- Anything that you think might make your situation unique.
Expect to Adapt
The loan process has changed a lot in the last decade. This means that you cannot expect it to be "the way it was before." If you work closely with your mortgage professional, he or she will be there to walk you through every step. If you approach this with an open mind and try to meet their requests in a timely manner, things will go smoothly. If you try to make plans based on your previous experience or what you have come to "expect" - you'll get easily frustrated. Even if you've secured home financing a dozen times...expect that the next time will be different. Some of the changes may seem like the lender or bank is being difficult but some of the changes are also there to protect you. The quicker you can adapt, the less stress you'll have.
Remember to Breathe
No matter how hard you may try or how extensive you plan, something is bound to get frustrating. Instead of letting your temper flare, try to incorporate deep breathing exercises into your reactions. The loan process is stressful. Every time you notice yourself falling victim to the anxiety and pressure, take a moment to focus on relaxing and letting go.
We know that the loan process is not a walk in the park and a lot is riding on getting the best mortgage for your family. That being said, we also know that stressing out isn't going to make it any easier. Take the steps to get yourself ready for the loan process and let your mortgage professional help you. Good luck!
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