Why do you need so much of my personal information? I have an 800 credit score and 20% down? I could buy this place for cash if I wanted to liquidate my 401k or stocks? Last time I bought a home they just wanted my pay stub, why do you want my tax returns? Are you out of your mind?
YES- Lender's are out of their minds, dealing with fraud and new government regulations.
Get used to it. More papers to sign, more info required from the buyer.
I have many perfect buyers with excellent credit, jobs, 20% down payment.... you name it, they have it.
BUT- Lender's are still going to put your client through the heavy wash cycle on high heat before approving a loan.
Your best bet is to work with an experienced Loan Officer. I also used to be an underwriter, so that helps :)
I explain to my clients, that we are not poking at their personal finances, we are simply verifying information. I am not looking at your bank statements to see where you went to dinner last weekend, we don't care. We are looking at the bank statements to ensure that you are the same Miss. Smith that I have a credit report on. We are making sure someone else is not paying you to buy the home for them.
More regulations will come out Jan 1st, 2010, I will adapt to them and continue to be the best in my field.
If buyers know up front what is expected, they are happy to provide it. I'm happy to answer their questions as to "why this or that", it's my job.
I may not be perfect, but I always plan ahead and my clients appreciate it.
Steve Moore
David Massey Real Estate
1629 S Church Street
Burlington NC 27215
Good article Steve. This is the kind of post that is useful and timely.
Great point, Steve... One of my Buyers Lenders has 50+ required articles before they are released to close. A little much, yes, but it's the price of a good clean loan after so much nonsense in the market.
Best of success to you!
Good tips. Thanks for sharing. Many borrowers are shocked with the details that lenders now require.
Short sale bail out..I have heard affects the credit score 80 to 100 points. But foreclosure up to 250 on the index. Credit scores..not sure folks groom, take care of it like they should..right up there with exercising, flossing your teeth, counting your blessing. Rememer they need to kill three trees to create the paperwork to make one loan..paperwork..part of the process, today.
Thanks to be sure, but I must give the credit to Melissa Kulikoff from Texas for the original post. I just re-blogged to keep it moving.
Steve,
Thank you for re-blogging my post. I certainly appreciate your support. It is also a great compliment.
Andrew,
A short sale is going to destroy your client's credit score. The bank may even attempt to collect on the difference later on. If the bank agrees to a short sale and does not also provide your client with a settlement letter that specifically states "this debt will not be pursued or collected and the obligation is released with prejudice" then your client may be in for a judgment later on down the road. The short sale is not the end to their credit problems.
Great choice of a re-blog, Steve! I think most borrowers would understand "why" if they're presented with information like this. :)
Leilani