How Easy Is It To Qualify For a Mortgage?
Mortgage underwriting guidelines change frequently, and levels of conservatism (or lack of) vary greatly depending on the economic landscape and government intervention. Witness the recent subprime bust!
At the time of writing, lenders are extremely cautious, and this can drive some borrowers crazy! They get angry and perplexed because they feel they are the ‘perfect borrower’.
It should be noted that lenders have to abide by government mandated guidelines. Remember also, your lender and mortgage broker both want your application to be approved but they cannot over-ride Fannie Mae guidelines because, in many cases, they are the insurer.
If you work with a broker and they are good, they will identify any potential roadblocks before submitting to a lender. Then, if any of the issues could benefit from a subjective view he or she will know which lender is most likely to approve the application. However, with a direct lender; if the application doesn’t fly you have to start all over again.
On a personal note I feel obligated to set my clients expectations, and I’ll share some interesting stories with you in future posts.
To maximize your chances of a successful, stress free transaction next time you next need a California mortgage or refinance, make sure you hire a mortgage broker you feel confident about and can trust. Interview him or her like you would a CPA, architect or lawyer.
Would you hire a professional in any of those fields without satisfying yourself they were competent, honest and reliable?