San Diego real estate blog - Peter Toner

A friend of mine has been trying to refinance his San Diego condo for three months now and was still getting the run around from the lender.

After we talked  he approached a new lender armed with all his paperwork (this time around he already knew all of the things he would be required to prove) and the transaction is going to close in under 3 weeks.

The moral here?

Do your homework up front, then apply for a loan. Working with a quality lending company is another key element to making the transaction as seamless as possible. Below are a few tips to know before you get started:

1. Documentation – The more you can provide to document your income and assets, the better. If you are self-employed two years tax returns with all schedules or twelve month bank statements are required.

2. Down Payment - The more you can afford to put down on the property you are purchasing, the better. The important thing to do is save what you can – a down payment of 10% or more is recommended under current mortgage guidelines, 100% loans are still available but more expensive than they were.

3. Credit Scores – Review your credit history and make sure that all items on your credit reports are accurate. Should you find discrepancies, discuss with your lender the actions you should take to correct them. If possible paying off debt is the quickest way to polish your credit and make it more favorable to lenders. A score of 680 or more is recommended to qualify for today’s best rates.

Now you should be ready to talk to a quality mortgage professional who is up to date on all current guidelines and get all the information you will need prior to applying. When you discuss the type of loan you are interested in, make sure you fully understand how each mortgage product works and discuss in detail the pluses and minuses of each - then it won’t come back to bite you later …

Written by Shawn McDonald - hopefully your paperwork won’t look like this!