• Homeownership: The American Dream (Part 1 of 3)

    The good news is 96% of homeowners see homeownership as a positive experience and 88% of renters aspire to own a home…[read more]

  • Proper Planning for Your Mortgage Application

    With good preparation, most things are easier. That works in mortgages too! Today, I want to give you some ideas that can make your mortgage experience less painful. Income Items:  Gather your documents. Today, many people will have to produce 2 years’ complete tax returns, including W2′s, 1099′s, K1′s, and all the schedules, as well […]

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  • How Much Money Should I Borrower?

    While it might be tempting to borrow whatever amount of money your lender is willing to give you, it’s important to think carefully about how much you’ll actually need to borrow in order to purchase a new home. From the down payment to taxes to insurance and interest rates, there are many factors to consider […]

  • How To Pick Your Lender

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News Flash: Lenders Are Busy

We live in a post-subprime world…and with that, come some good things and some not-so-good things. Much of the “bad” in mortgages has been cleansed (bad loan products and many of the unqualified “professionals”). And that is good. But another consequence of the past five or so years is the shear loss of people who can fulfill the demand of today’s public.

As an industry, we are short appraisers, loan officers, processors, underwriters and closers and things are getting backed up.

With rates at (or near) all-time lows and some of the government initiatives kicking into gear (HARP 2.0 and FHA Streamline, as examples) refinances are plentiful. At the same time, sellers have become more realistic in pricing expectations and buyers are jumping off the fence. What sounds like great news is truly not-so-great.

Normal turnaround times are being strained. Appraisals are delayed. The number of files has processing and underwriting unable to keep up. Answers about getting project approvals are being set aside.

What does a lender do?

  • Do you hire more people with the notion that you can just lay them off if rates go up?
  • What about the time, energy and expense involved in training them if this need is short-lived?
  • Do you work the current staff so hard that they burn out or can’t deliver the customer attention you would like?

Or do you come clean and reset customer and referral partner expectations? While we all do value our clients, we need them to understand that volume is exceeding capacity. At the same time, many things are just plain outside the direct control of your lender.

My advice is to gather as much of the required documentation as you possibly can before your mortgage application. Make your file an “easy” one to get through. Talk to your loan officer about expectations and the best way to communicate so disappointments are minor. Buying/selling a home is emotional and pressure-filled for sure. And now, we have time constraints to add to that. Preparation and planning (along with some patience) can go a long way.

Source: KCM Blog

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