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.
How does one pick a loan originator (assuming one has good credit and a substantial down payment)?
It seems like if you tell them you want a 30 year mortgage with a fixed interest rate, they are all the same. Someone said that the difference is the service, but that doesn’t seem like it should matter a whole lot because after you have your loan, chances are good that the loan will get sold.
The main difference between loan originators are their personalities, commitment to the client, and pricing margins. All these are important and yet it’s not always easy to guage up front how each lender fairs. Typically your assessment will be made after the transaction is complete.
The very best advice that I can give you here is to ask your Realtor, friends or family for a referral. Mainly because if someone else has had a pleasant experience, the odds are much higher that you won’t regret your decision.