The real theme of this article should be all the change- and it has been an avalanche – wrought by the government in recent years to handle something that simple attrition has fixed. The problematic players in the real estate debacle, both the banks and the unscrupulous loan agents have, in the main, fallen out of the business. I assure you that the ones who remain in business are more likely the true professionals who figured out the current lending environment and are still making a living within the ever tightening market.
The purpose of this article is twofold:
1. To encourage Buyers/Borrowers to find a loan agent that will competently represent them in getting the loan necessary to purchase a home or refinance and
2. To be prepared to dump any loan agent that demonstrates anything but number
1. Actually the main purpose for this article is to get the Buyers active in the market –IN SPITE OF ALL THE NEW REGULATION. As of January 2011, the main problem facing Buyers and those looking to refinance, are the too strict lending guidelines brought about by the governments legislative response to the real estate debacle of the last 5 years. I read a great article the other day written by a loan processor who worked for a busy lender. She said the new rules are restrictive and a horror but they are the current dictates. Quit griping about them and learn what they are so you can get the purchase or refinance done for that borrower. Griping about it solves nothing. Along that same vein, as a borrower, the new regulations are here to stay and you will have to deal with them to be a borrower, whether you are buying or refinancing. Do not be chilled by the fact of tighter regulations. Get out there and find out what you can do. Then do it or get a plan for doing it. “The only thing to fear is fear itself.” (Franklin D. Roosevelt 1933)
So I mention the current strict guidelines as the main problem, but it filters down to the banks that actually are on the streets with the loan programs that must meet those guidelines and the loan officers who still have to sell those programs, however restrictive (oops! I forgot I’m going to stop griping). To keep it really simple, you will really not know if the loan officer you have chosen to do your purchase or refinance is worth a darn until you get into the transaction. As soon as you get the feeling that they are stopping your transaction from going smoothly or outright putting problem after problem in your path, grab your file and try again elsewhere.
You are hitting up against a problem with the loan officer not knowing what is going on with the current underwriting guidelines, the guidelines from the bank being overly restrictive for what the regulations actually call for, the way they have to deal with appraisals is killing your deal, etc. Whatever it may be, you will know if it feels uncontrollable. This is the time to at least start looking around to see if the problem you are encountering with that lender/loan officer can be solved by a competing lender. You know, years ago I would never have suggested that you look elsewhere once in process on a loan. But the current lending environment is completely wacko right now and it should compel a buyer/borrower to operate differently to get the job done competently.