Adjusting to the New Reality

What is the common denominator between a root canal, colonoscopy, giving blood and obtaining a mortgage? If you are buying a house, then the answer is you. I read an article as I was finishing my morning coffee that reminded me exactly what I was trying to avoid by writing the Mortgage Manifesto. (http://www.msnbc.msn.com/id/37831562/ns/business-real_estate)

There is an industry joke that getting a mortgage is like having a root canal. It isn’t a joke but a way to describe the reality of the situation to borrower. The article by Bill Briggs actually commented this….

“Even for successful buyers with sterling credit, seeking a mortgage these days feels like a simultaneous root canal and colonoscopy.”

I will not give away the article or point out my previous articles. I just suggest that you revisit previous articles to avoid as many sticky messes as possible. There was a lot of truth in this article; however I did have one objection. It was the comment on lenders being part of the whining during the process because they don’t have underwriting experience. The article didn’t mention that all the guideline changes have tied up the underwriters with extra processes and paperwork needed for a single loan. The truthful part is it has become more difficult for the loan officer to go to bat for buyers when underwriters see no grey area and buyers resist sending the proper documentation. Industry changes have made the stress seem like it out weighs the reward of helping a new homebuyer get into a house. All of the guideline changes, endless documentation and running around in circles ends up making everyone irritated. The lender/loan officer just happens to be in the way of the fire.

Another article on www.cnn.com wrote that “1200 prison inmates, including 241 serving life sentences, defrauded the government of $9.1 million in tax credits reserved for first time homebuyers.” This type of fraud and lack of crosschecking is the very reason it has become so difficult to obtain a mortgage. You have to prove everything which means document, document, document. These rules apply to everyone no matter the size of the home, credit score, size of down payment or homebuyer status. The industry has been burned and we all have to suffer together. If you are in the middle of obtaining a mortgage then remember to bring your positive attitude because there is a big prize at the end of your journey.

“When you come to the end of your rope, tie and knot and hang on”- Franklin D Roosevelt

“The artist is nothing without the gift but the gift is nothing without the work”- Emile Zola

“If you change the way you look at things, the things you look at change”- Dr. Wayne Dyer

Adjusting to the New Reality