LENDING IS VERY FRUSTRATING

Most days I don't like my job.  24 years in mortgage lending and some days I lean towards checking the want ads for a job. 

I've got a massive headache as we speak.  When we take a loan application, we need 30 days of the most recent pay stubs, 2 months bank statements, 2 years worth of W-2's and Federal tax returns with all schedules.  We send out verifications of employment and deposit, wait for a week or two to get them back, we ordered the appraisal that takes 2-3 weeks to get.  Then we get the file ready to submit to underwriting.  Guess what - the last bank statement we got is too old.  Pay stubs and bank statements can't be over 30 days old.  We call and request newer ones.  By the time we get those, something else is too old.  It's a vicious cycle. 

Or we get a new pay stub and the borrower isn't working 40 hours.  Why are his hours less?  Is his job in jeapordy?  There goes the red flag on income. 

It's no longer a question of how can help a borrower get into a home, it's what can we find to turn a borrower down.

If it's not the borrower income or assets that's the problem, it's the property.  They want 3 identical comparable sales of homes that have sold in the last 3 to 6 months in similar neighborhoods.  That can be a problem.  Around here, a home in the country on 15 acres, outside a small rural town for $350,000 will be a problem, as there aren't any comparable sales.  Houses in not-perfect condition are becoming a problem.  Repairs have to be done by closing, sellers don't have the money to do them, borrowers can't get the loan till they're done.

You request an item from a borrower to solve one problem, and it triggers more needed items.

NSF's on your bank statement can cause your loan to be denied.  An isolated bounced check is ok, but if it's a continual thing you may not get a loan.

Haven't had your job for 2 years?  Don't have 3 active credit accounts with a 12-24 month payment history?  Have miscellaneous undocumentable deposits on your bank statement?
Cash at home you want to use for a down payment?  Commissioned? Seasonal employment?  Self-employed?  Truck driver paid by the mile?

All these things will make getting a loan difficult.

Since I can remember, we got a verification of employment, a check stub and your W-2's for income, a verificaiton of deposit to show you had sufficient funds to close and see what your 2 month average balance was and prove you had cash to close. 

It's a different ball game out there folks.  Now we get W-2's, Federal Tax returns, every pay stub you ever get, each bank statement you get till closing, we get your tax transcripts from the IRS to see if your tax returns are faked, we get verification from the social security administration to make sure you didn't steal the social security number, we pull your employers name and address off the internet so we've checked the address and phone numbers to make sure it's not a bogus emloyer we're given, we call just before closing to see if you're still employed, ughhh.

When we do a loan, we need actual bank statements, but we usually get print-outs that don't show us account numbers or even the borrower's names. When we do get bank statements they say page 1 of 4 and we only get 2 pages. If it says 1 of 4 pages, we need 4.

Borrowers are getting frustrated with us, we're getting frustrated with our underwriters. Lending is just not fun any more.

I developed a booklet for my homebuyers that explain the 5 parts of a loan, what to do once you've applied for a loan, what NOT to do, and what to expect. 

If you're a home buyer and want to find out about the pain-in-the-behind homebuying process, shoot me an e-mail and I'll send you a copy.  It will help you understand the hell that is my life, known as mortgage lending.

HOME BUYER TAX CREDIT - 28 DAYS REMAIN

You've only got 28 days left to take advantage of the Home Buyer tax credits for new and repeat buyers.  You need to get your offer accepted by April 30th to qualify and the loan must close by June 30th.  Up to $8,000 for buyers who have not owned a home in the past 3 years and up to $6,500 for repeat buyers who have occupied a home for 5 of the last 8 years as their primary resicence if they buy another home to live in.  Great time for upgrading, downsizing or if you just want a different house.  Call or e-mail me for details.

Buying a home in the flood plain soon?  Here's a recent event on that topic:

National Flood Insurance Program (NFIP) Authorization
The National Flood Insurance Program’s (NFIP) authorization to issue flood insurance policies expired at midnight on Sunday, March 28 as Congress did not vote to extend the authorization until April 30 prior to leaving for Easter recess. Any property located in a Special Flood Hazard Area (SFHA) may not close until the NFIP obtains authority to issue flood insurance (estimated to be April 12 at the earliest)

HAPPY EASTER EVERYONE!

WHEDA LOAN offers possible ZERO DOWN PAYMENT

WHEDA:  Wisconsin Housing and Economic Development Authority

They joined forces with Fannie Mae to come out with the WHEDA Advantage program.  Wisconsin properties qulaify.  Purchase price limits vary per county

Rate today is 5.75%
With 20% down it's 5.4%

Possibly no down payment with qualified buyer and credit score. 

30 year fixed rate loan.  Income limits apply.

BUYER TAX CREDIT - 37 DAYS REMAIN

37 days and counting.  You're running out of time to get your offer accepted and take advantage of the up-to $8,000 1st-time buyer or up-to $6,500 repeat buyer tax credit.

If you need the details to see if you qualify, give me a call. 

1st-time buyers are buyers who haven't owned a home in the past 3 years.  Repeat buyers are buyers who have occupied the same home for 5 of the last 8 years.

This credit has been extended for our veterans serving in Iraq.

44 days remain to take advantage of homebuyer tax credit

Only 44 days left to get an offer accepted on a property and take advantage of the $8,000 1st-time buyer credit or $6,500 repeat buyer credit.  If you need to know if you would qualify, give me a call or send me an e-mail.  Offers need to be accepted by April 30th and the loan must close by June 30th.

You can't get the money then buy, you have to apply for it after you purchase a home.

Have a great day!

WHEDA zero-down loan available today

It's March 1st!  The WHEDA FannieMae Advantage program came out today.  Zero down, 30 year fixed rate for Wisconsin homes.  1st-time buyers (haven't owned a home in the last 3 years) or any buyer in a TARGET area.  Rates change daily, but todays rate is 5.75% but that's with no mortgage insurance, no down payment, and only a $1,000 investment from borrower's own funds.  Balance of closing costs and pre-paid expenses can be paid by the seller.

Just another program to help borrowers get in on the $8,000 1st-time buyer tax credit.

Call me for details.  If you're not a 1st-time buyer, call me for the "target areas" to see if you can buy anyway.

WHEDA 1st-time buyer finanicng available again

THEY'RE BACK!  Wheda has been out of home financing for a couple years but is back just in time!  Their new program is the WHEDA Fannie-mae Advantage ZERO DOWN loan.  Designed for borrowers who haven't owned a home in the past 3 years.  Borrowers must contribune $1,000 toward closing costs from their own funds.  Income restrictions vary per county.  Wisconsin homes only.  Single family and duplexes over 5 years old.  Owner occupied only!  Rates estimated around 5.75% with no mortgage insurance which makes it a competitive rate compared to a conventional loan around 5% with mortgage insurance. 

This program comes out just in time for buyers to take advantage of the $8,000 buyer tax credit, also for those who haven't owned a home in the past 3 years. 

There are also TARGET areas throughout Wisconsin where you can still buy even though you have owned a home in the past 3 years. 

Call me if you need details.

63 days remain to get your offers accepted and take adavantage of the homebuyer tax credits!!!!!