The mortgage process can be very frustrating, but there is a reason why lenders need to be extra cautious that all their documentation is correct.
The sole reason lenders exist is to make money through the fees they collect during the mortgage process and the process they make when they sell the mortgages. YES, after they make the loan, they SELL your mortgage after closing. Investors buy huge amounts of mortgages in large bundles, and to insure they are buying ‘good’ loans, they audit the loans AGAIN. If your lender fails to have all required documentation, they may have to ‘buy back’ a defective loan, which is incredibly costly to the lender.
Defective loans caused the real estate meltdown in 2008, which caused investors to put more stringent safeguards in place to prevent this from happening again.
One of the biggest challenges is borrowers who wait until the last minute to get requested documents to the loan processor. It is not uncommon for the documentation provided to require more information, so my advice for homebuyers who want the smoothest possible transaction is to submit all requested documentation ASAP! Do not procrastinate… you might think that one day might not make a difference, but every single day counts when you trying to meet a closing date or rate lock deadline.
We work with several lenders that do business in the Nome area and are happy to help with giving you a referral to lenders who have been successful with loaning money in unique situations. Feel free to give us a call if you have any general questions about the lending process.