Let's all pray that the lenders get back to a middle, more sensible approach to mortgage approvals.
There is no doubt that the loan process is more complicated than it used to be. Best evidence of such - we had a client who had excellent credit and was putting down 50% on a $2.25M house and they made him take an online quiz about managing his credit.
Because of the subprime debacle lenders (in part because of govt regulations) have tightened up the process, and you have underwriters who are super careful to make sure all the i's are dotted and t's are crossed - sometimes for ridiculous things - because they don't want to get called to the carpet for missing something.
That said, we have not had a single loan not go through with the lenders we regularly use. The problem is that there are many lenders/mortgage brokers who will tell you no problem on the front end to get your business and hope it goes through.
There have been a few buyers who were told by our preferred lenders that they couldn't give them a loan. The difference between them and you is that they were told on the front end.
What you need to do is speak with some lenders who are ethical, responsive, and honest so you can get a true picture of if you can qualify and for how much, or what you need to do to be able to. If you would like referrals drop me a line or give me a call.
Lance King/Owner-Managing Broker
I just heard that yesterday at my open house. My response was buyers now need to show the lenders they have the ability to pay them back. What a novel thought.
The fact of the matter is that it is more difficult to get a loan, that's why you need to work with a true professional who is proactive, not reactive when it comes to getting a loan. If you get what is needed up front, you usually don't have those problems when it comes time to close.
And some lenders are a pain in the a.. , to be honest.
Buyers need competent mortgage professionals to help them prepare for all the "hoop-jumping" and avoid the many pitfalls. Let me know if you need recommendations.
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted.
It sounds like you may have had an issue with a lender. Banks are lending and frequently. The process is harder than it used to be in the early 2000's, but they are really only doing what they traditionally did - check, check and check again.
If you work with a good agent and a bank / mortgage broker, you should be able to be pre approved and not only find a place to buy, but working closely with your agent you should be able to get over nearly any hurdle, and in most cases see the problem as it starts and head it off.
Please feel free to call for referrals.