As we all know - in years past; just about anyone could get a mortgage. Of course there were standards; but they pretty darn loose. A mediocre credit score; very little cash and even shaky job history - would get you qualified for a mortgage.
The Pendulum had swung so far - that my dog could have been pre-approved to buy a home!
Now things have changed. DRASTICALLY !
I have had clients will PLENTY of CASH. GREAT job history. GOOD - even GREAT Credit. But the hoops they are now having to jump through is getting simply - CRAZY !
Many of the agents in my office joke about buyers needing to supply a DNA sample when applying for a loan. It's almost the truth. Banks and their underwriters are being super-cautious when approving loans for people.
The Pendulum is now at the opposite EXTREME!
Some things Borrowers Need to know:
- Work with a reputable lending institution. With so many changes in lending standards - make sure you are using the best in the business. Remember: Biggest is not usually Best.
-Get your loan officer every single piece of paper he/she asks for immediately. Not quickly - but immediately. They need every hour; every day to get things processed.
- Be ready for last minute requests. An old tax form; an old check stud - keep all your important papers close at hand.
- DON'T move money around. Large deposits or withdraws are big old RED flags to underwriters. If you need to transfer money for closing. Do it as soon as you can and preemptively send your loan officer documentation as to where the money was transfered from and where it was transfered to.
- The Banks are backed-up. Period. They have cut staffs and now are overwhelmed as the volume of sales and re-fi's are increasing. For many of the large banks - be prepared for long hold times and overall lousy service. Even lenders whom I have worked with for years are victims by their own banks lack of resources and personnel to process the loans.
- The closing date - with so many delays and last minute requests from the underwriters - don't bank everything on moving the day after closing. Expect a couple of day delay.
Lastly - be patient. Easier said than done; especially in a big move; but it is the way things are today.
Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!
Office: 202-362-5800 Cell: 703.244.3971
Licensed in Washington DC, Virginia & Maryland.
Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100 * Washington DC 20016
