Steps Involved In Successfully Modifying Your Mortgage
Applying for a loan modification can get overwhelming for most homeowners
. A lot of people believe that modifying your mortgage is a tough and exhausting procedure. Hence, a lot of families end up losing their home because they are too afraid of talking to their mortgage lenders and are wary of the long drawn-out process.However, the fact remains that a mortgage loan modification can be a straight-forward process although it can take some time to know the final outcome of the application. It is only the preconceived fears in the minds of homeowners which make them feel they are at a dead end with their homes. If you just followed the few simple steps involved, you can get your loan modified to a payment you can actually afford.
Step 1: Staying Organized
The first step is simply to get organized. Many homeowners make the mistake of jumping right in and then getting completely weighed down under the pressure of saving their homes. All you need to do in the beginning is sit with your family, discuss your goals and your current resources to achieve these goals and make sure you have a plan of action.
If you are not sure about how the loan modification process works, get yourself a guide and go through it. Ideally, if you are purchasing the guide via the internet, make sure you get free unlimited phone support with your purchase. That way, you will also have someone assisting you throughout your journey without escalating the costs.
Step 2: Arrange Your Documents
Mortgage lenders will require a set of documents along with your application. Without these documents, your application will surely be rejected. Examples of these documents are paystubs, bank statements, hardship letter, and financial worksheet, etc.
Learn what is required by your mortgage lender. Make a checklist and start putting those documents together. Ensure nothing is left out.
Step 3: Review Your Documents
It is not just necessary to have all the documents in place. You need to review them for mistakes. Check and recheck them if you have to. Any error in the documents could get your application rejected immediately.
Step 4: Apply With Your Mortgage Lender
Now that you have your documents in place and you know how the loan modification process works, you need to apply for modifying your mortgage immediately. Submit your application to your mortgage lender; make sure they know the hardship you are facing in paying your current mortgage and ensure they verify receipt of all the documents submitted by you.
Before you submit your application, you should also try getting some tips on how to talk to your bank. Learning what lenders look for before applying can increase your chances of successfully modifying your loan. This is an important step. If you know what to say and how to present your documents, it could make a huge difference in your modification.
Step 5: Follow Up
This is the final step of the process. Remember, all the follow up with your lender needs to take place from your end. Banks will never call you. You have to call your bank to learn about the status of your application. Follow up at least every 2 weeks and offer your bank assistance if they require any further information from you. Calling them regularly will help speed up your application and also will ensure your mortgage lender has everything they need to approve your loan modification.
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