By J. Mansisidor

With all the new regulations in today’s mortgage industry, closing on time has become more challenging than ever and more costly to the consumer.  Consider some of the examples below and how they can affect you and your wallet.

· Lost work or vacation time.  Taking additional days off to attend a rescheduled closing can cause financial and professional headaches.

· Increased moving expense. The moving truck may be all packed up and ready to unload – but if the closing is delayed, you may have to pay additional days of storage on that truck.

· Storage expenses. If you’re moving over a holiday weekend, you may not be able to keep your household items on the same truck. You may have to rent a temporary storage unit and/or find another company to complete the move on the new schedule.

· Increased temporary lodging expense. Imagine you’ve just sold your house and moved out, but your closing is delayed.  You may find yourself with an unexpected hotel bill.

· Frustration.  Rescheduling child care, furniture or appliance deliveries, contractor services (flooring, painting, etc.) and utility activation are but a few examples of the hassles that delayed closings cause.

The above scenarios may seem extreme, but they happen all the time.  So how do you avoid these situations?  It starts with having a knowledgeable, experienced, ethical and diligent Loan Officer.  When you begin shopping lenders and interviewing loan officers, ask how they will ensure that your loan closes on time.

Lenders aren’t permitted to require supporting documentation from an applicant during the pre-qualification stage.  However, providing your supporting documentation will allow the Loan Officer to reference that vital information on your Pre-Qual Letter.  The following are standard requirements:

· Most recent (two years) tax returns (personal and business, if applicable)

·  Most recent (two years) W2’s, 1099’s, K1s  (if applicable)

· Most recent two months paystubs (or employment contract, if applicable)

· Most recent (two months) checking/savings/retirement/ investments statements (all pages)

·  Photo ID

If you’re a Non-Permanent Resident Alien, be sure to ask if your qualification is still valid.  And if you’re a first time home buyer, don’t forget to ask about any programs available to you.

The more questions you ask or the Loan Officer brings up at the beginning of the process, the more likely you will close on time – and the more likely you’ll avoid any of those unpleasant scenarios!

J. Mansisidor is a Senior Loan Officer with Fulton Mortgage Company, a division of Fulton Bank, NA.  www.fultonmortgagecompany.com