While searching to explain the rigorous documentation lenders are requesting of their customers, I came across this super Forbes article. “BECAUSE I SAID SO” never felt like a great explanation when growing up, so in advance I am sorry for “saying so”. The excessive requests rarely make sense to me either my fine , stellar and amazing friends & clients …but I PLEDGE to surround you with a superior team who can sprinkle in a bit of HUMOR & JOY as we achieve your loan approval. Mea Culpa in advance! Jan
3/09/2012 @ 10:23AM |168,436 views
The Perfect Loan File
The media has it all wrong – securing mortgage approval and satisfying credit underwriting guidelines are not the difficulties plaguing mortgage consumers. It’s in meeting the rigorous documentation requirements that most people fall flat. The good news is, the fix is simple. Just scan, photocopy, fax, and deliver every aspect of your financial life. Then, shortly before closing, check everything again. Mortgage consumers who enter the mortgage approval process ready to battle their chosen mortgage lender will come out with a nightmare story to tell. As the process, requirements, and guidelines are the same for everybody, your mindset is the game-changer. Accepting the redundant documentation necessary for lender approval will make everyone’s life easier.
When I was a kid, my father occasionally issued directives that I naturally thought were superfluous, and when asked why I needed to do whatever it was he wanted me to do, his answer was often: “Because I said so.” This never seemed to address my query but always left me without a retort. This is exactly what consumers should do during the mortgage approval process. When your lender requests what seems to be over-documentation and you wonder why you need it, accept the simple edict – “because I said so.” You will find the mortgage approval process much less frustrating.
So, what’s the perfect loan? Well, it’s one that (a) pays back the lender and (b) pays back the lender on time. Underwriting the perfect loan is not the goal that mortgage lenders aspire to today.
The real goal is the perfect loan file.
Mortgage lenders have suffered staggering losses and gone out of business because of the dreaded loan repurchase. As mortgage delinquencies increased, FannieMae and FreddieMac began to audit mortgage loans they had purchased and discovered substandard and fraudulent underwriting practices that violated representations and warranties made, stating these were high quality loans. Fannie and Freddie began forcing the originating lenders of these “bad” loans to buy them back. So a small correspondent mortgage lender is forced to buy back a single mortgage loan in the amount of $250,000.
The response to all of this is that our country now has “TERRIFIC” loans (YOU and I always fell into that particular category, ya know?). These “new” loans are documented down to the wire with each and every T crossed. Guided by a sense of grace and humor the Jan Hill Team gets you to the finish line EVERY time…cause that’s how we ROLL… Count on US like we count on YOU!