Ok, it’s to the point where it’s rediculous now. This is the second time in 1 week that a buyer has walked because of lenders over-cautious & tedious practices. And I can’t say I blame them. Both buyers have credit scores over 720, they’ve been at their jobs for more than 2 years. Their debt to income ratios are in line…so what’s the problem?
The first buyer last week finally called it quits when the lender came back for the 5th time requesting more conditions be met. OK, once is normal, twice is acceptable, 3 times is really pushing it. And finally, on the fifth time my buyers just said “If they don’t want to give us the loan, why don’t they just say so. We’re done.”
So I understand that conventional lenders are really trying to cover their butts right now. Especially after the bath they’ve taken on all of these subprime loans over the last 12 months. But c’mon guys…when you’ve got an ‘A’ file on your desk, approve it! There’s a big difference between this type of customer and someone with marginal credit, no money down, and questionable abilities to pay.
If these lenders don’t stop hesitating to pull the trigger on good loans, we’ll only continue to see home prices fall and experience the economy gain momentum on the roller coaster to recession. Unfortunately, these lenders have gone from one extreme (lending to anyone with a pulse) to another, and they’ve got to get their stuff together quick!
Ok, that’s my rant for the week.
