My go to mortgage guy, Rob Clark, recently forward an article to me that is a good look at what mortgage brokers are facing on a daily basis. It is also must reading for any potential buyer.
In what is absolutely fallout from the abysmal headlines of the past two years, banks are now reviewing every mortgage application as if it were life or death. Bottom line – good credit does NOT guarantee an easy mortgage approval.
On one hand, we applaud the industry for tightening formerly sloppy practices but we wonder if this extreme scrutiny will thwart the progress we have begun to see in home sales. With interest rates at an all time low buyers should be able to take advantage instead of taking a back seat.
Talk to a mortgage broker or banker and get a list of everything you are going to need: pay stubs, tax returns going back at least five years, credit reports and written explanations of any questionable issues; outstanding loans (cars, student loans, credit cards, etc.), etc., etc.
Be prepared to answer the same questions more than once, to sign documents that have already been signed, to maybe even go back ten years on your tax returns. It’s a whole new world out there.
For the full article, click here.
If you have more questions about the buying process or about getting pre-approved for a mortgage, give me a call at 703.927.4554 and let’s talk it through.