Remember when you could call up a lender, tell them how much you make and how much you owe in car and credit card payments and they would tell you how much you qualify for? Well, those days are over…
Today, I have the unpleasant task of cancelling a contract for one of my buyer clients because their loan fell through. This is happening way too often as the mortgage industry continues to tighten up on their lending practices. My clients were pre-qualified and the lender assured us that they were in good shape. But when we presented the contract and it was time to put the deal together, my clients were told that they are out of luck.
At this point in history, before you ever step foot into a house you are thinking of buying, you need a full doc qualification with desktop underwriting to determine if your entire scenario matches up with investor guidelines to make sure your loan will actually get funded.
You would be surprised at who is having trouble getting a loan these days…pretty much everyone is at risk of losing out on a house because their loan doesn’t go through. Good credit, cash on hand, job history – with all the changes in the industry regarding guidelines and process changes, it is critical that you are working with a capable lender who will go to the mat for you to get your loan closed. There are no slam dunks.
It’s not just the fly-by-night mortgage guy on the internet that you have to watch out for. My clients were working with a large, well-known banking institution. You best bet is to work with someone that you or your realtor have a working relationship with – who will do what it takes to make the deal happen. And someone who will tell you the truth about your ability to get a loan – ggod news or bad…
Do your homework and avoid the unpleasant experience of losing out on a house you love because your financing falls apart. Believe me, it’s not fun.
