DO NOT FEAR! The
lender's "Underwriter" is not the "Undertaker." You will
get the loan. Just be patient and understanding. Prior to the mortgage crisis
of 2007, loan processing was too lenient. Now, in order to avoid the problems
of the past, the pendulum has swung back in the opposite direction.
Today's loan approval process
is much stricter and detailed. It is the "Underwriter" who reviews
the loan application, the financial documentation, and the appraisal with a
"fine tooth comb." Everything has to be 110% correct in order to be
finally approved for the loan. It's simply the current lender climate (the new
sign of the times).
Every realtor and loan officer
needs to caution the Borrower (purchase or refinance) that the loan process
will be very detailed and complex. It is normal for the lender to continue to
request more information up until closing. The Borrower need not start a
conversation with the loan officer asking, "Why do I need that?" or
claiming, "I didn't need that last time." As long as the Borrower is
flexible and understanding, the loan will eventually be approved. Just
cooperate with all the crazy requests, and you will get the Underwriter's
"final approval" to close.
PS. A number of our local
lenders recommend that the Borrower read The
Perfect Loan File from Forbes Magazine.
William D. Tucker, III
Tucker Griffin Barnes
Charlottesville, VA
434-973-7474
www.TGBLaw.com
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