So why am I not locking in your loan?

Good morning all! I hope you're well.

I was thinking this morning about why I'm not locking your loan in, especially with rates at all-time lows.

Here's a list of things I like to see before proceeding. Otherwise, it's wishful thinking.

1) I like to see if there is value. Most of the time, we want to see value at greater than 80% (loan-to-value of 80% or less) for a refinance or 96.5% (loan-to-value at 96.5% or less) on a purchase unless you live in a rural area, are a veteran or can use some special financing through a state bond program, for example. On purchases you will need to show you have the necessary funds to close. See #2.

2) I like to see documentation. If you're working for someone else, W-2's and bank and brokerage statements will be asked for. I have to see if I can get you approved based on what you'd like to do. If you're self-employed, expect to provide at least one year of tax returns. Your Schedule E income is critical here in most cases. If you write off a whole bunch of stuff, that may mean you won't have enough income to qualify.

3) I like to see your mortgage note as it tells me what rate you currently have if you're considering a refinance. Call me old school but I'm just not one of these people who is willing to refinance everyone. I like to believe my client is getting a tangible benefit by refinancing. In most cases, this means either a decent monthly savings on your payment or the ability to get cash back to pay for something needed, etc.

4) I need to check your credit. I can't just take your word for it. Your credit will determine what type of loan program will be best for you. And mortgage credit is entirely different from some types of credit available over the web.

5) I need to fill out a full loan application complete with all the details about your work contact phone #'s, year your home was built, etc., etc. The more information I have the better.

6) In addition to the above, I will need your current mortgage statement and for you to sign and send back our credit disclosures so I and my team are authorized to verify your employment and order your tax transcripts from the IRS, for example.

Most if not all of my clients are very cooperative and can get me this information quickly if they're motivated to take advantage of the low rates available. I usually can lock your loan quickly if all of the above line up. Otherwise, we'll have to try again tomorrow and hope rates don't change too much.

I hope this has been helpful. My goal here is to let you know what I'm doing on your behalf to make sure you are approved for your loan. Thanks for reading. Have a wonderful day!