You need to know this when buying a home!
Can you believe that we are in a major challenge in today's market. The lending processes getting more and more challenging with more then 3 out of 10 deals that need a loan falling apart even if you can get a buyer and Seller come to terms on a sale (not an easy feat these days). What are some of the more common reasons?
- Appraisal issues – In many markets, we are still seeing slight declining values. Appraisers are in a difficult position, and with so many transactions (including Seller’s concessions to assist buyers with closing costs) values aren't always coming in at sales prices or even market value.
- Short Sales not being approved by the Lender – With so many sellers owing more than their home is worth, buyers’ proposals need to be approved by the Lender (who will be receiving less than they are owed). Some of the offers are too low, but often, the lender isn't local and they really don’t know what the property is worth in today's market, sometimes trying to get more then the property is worth in it's current condition.
- Bad pre-approvals from the loan officer – Today, Loan officers who are not reviewing credit reports, tax returns, analyzing bank statements, and asking for detailed explanations and documentation on credit blemishes. They are truly hurting the customers. Issuing pre-approvals based on the just what the customer says and not really looking into their real qualifications. One of the biggest things we see is the lack of understanding about closing cost and what it will really cost to close the transaction in addition to the down payment. Their are additional cost that need to be talked about.
- A lack of transparency – Whether it’s a Seller or agent not disclosing property issues, or a buyer trying to sneak things by an underwriter, too many people think they can cut corners. Everything needs to be uncovered. Being honest in the beginning, gives you the best chance to overcome obstacles.
It is getting more and more challenging to close loans in today's market, the underwriting guidelines are changing every week. Some are making it hard for people to get loans. However, with proper planning and integrity, many of the challenges can be dealt with early and successfully. If your interested in finding out more, we are here for you. We can help you get through this with out the Horror stories. Don't take our word for it, listen to what our clients have to say. -- Click here to read!!!
