I got know where, weeks late, until head VIPs got involved.
Inbox me if you want their emails.
We can do: FHA, Conventional, USDA, VA, HARP, Interest Only, Home Equity, Fixed, and Variable. Find out which product is right for you by calling Brad at (855) 415-5626.
Sr. Loan Officer
Crosscountry Mortgage Inc.
Toll Free: (855) 415-5626 ext. 5734
I've seen my local Wells Fargo do loans I could not...painful as that was...and have heard other not so happy loan stories.
- If you are working with a Realtor, get their input.
- Check with your friends who have bought recently.
- Do a local search for mortgage lender/broker
- Check out their website, reviews, and videos.
- Meet in person.
There are two distinct types of borrowers - Vanilla and Rocky Road.
Understand which type you are.
Be prepared in advance with all documentation.
Understand the 3 mortgage banking models- Retail, Broker, and Mortgage Correspondent.
Find a correspondent lender who approves loans locally.
Watch what I mean by local:
I believe the reason is two fold, the first is that while they won't tell you so, all the big banks have overlaid additional underwriting requirements not mandated by the secondary market. which is where they sell all their loans. As I've written these are not required and they vary from bank to bank. Secondly they've essentially threatened their underwriters telling them in so many words "If you approve what turns out to be a loan we can't sell on the secondary market for any reason at all, you're going to be fired." Given a dictate like this and no clear instructions on what constitutes a "good" loan,; the easiest thing the underwriter can do is simply stall, say, no, and throw up hurdles. They've been put in a bad position and are simply trying to make the best of what is an unenviable position.
Experienced agents know this and most (like myself have simply stopped recommending any of the big banks to our clients and have found smaller, nimbler lenders who don't seem to have half the trouble issuing loans as the big banks do. At this point if you're in underwriting there's not much you can do but live with it, and once you're closed let them know that based on your experience you won't be doing any more business with them and will be advising your friends and family to avoid working with them. The only way it's going to change is when they've lost enough business to be forced to change.
No general concern is displayed for the consumer either- I don't think they understand that there is a real asset behind the paperwork either. Every day that passes, dirt and debris collects on the property. Every rain, additional water comes in through the leaks. None of this can be addressed until the loan closes. There is no one to turn to, except as in this case, I'm using my reserve funds to hire a lawyer.
But to call them useless and misdirected is not fair. It seems that each underwriter is that way, but lets look at what they are up against.
An underwriter is responsible for their own loans going 'bad'. A file that is either bought back by the investor or goes into default is a reflection on the underwriter and may result in their job. So they are following the book by the letter. To blame shortcomings of a file on an underwriter, is like blaming a lemon on the driver.
I agree with my fellow loan officers, if the loan officer is doing their job, upfront, there should be zero surprises in underwriting. A good loan officer will make certain that all the documents of a file are in it prior to submitting it to an underwriter. An awesome loan officer will review every one of those pieces of documentation to uncover any questions an underwriter (or anyone else for that matter) will be asking about the file.
Stumbling blocks: large deposit sources (sit it on the bank statement at application, ask the borrower for documentation to go along with the large deposit. Was it a gift? A bonus?) If the deposit cannot be sourced (evidence of source of funds), that bank statement should not be submitted until the new one is issued.
Paycheck stubs (garnishments? time off?)
Tax returns? Even if your borrower is a W2 employee, get those 1040s up front and look to see what schedules are being file. Perhaps a small 'Avon' type businesss is being run. You would need to count the negative income for that...
There is so much to look at ahead of time for a loan officer. And it is the loan officer's responsiblity to know what the changes are (and there are changes constantly).
Underwriters can make mistakes. Once those mistakes are pointed out they will back off the condition.
It has been frustrating for all of us.
Another reason I think we may want to consider 40 days closes. Just a thought
Good luck and stay positive!
Home Mortgage Consultant
(415) 271-7740 direct
ALL underwriting is slow. Having a good loan officer makes all the difference in the world. I was having a problem with a loan because my buyer inadvertently transposed a number on her SSN. My loan officer, Susan Costello, caught it. Then because underwriting over-analyzed the file again--because they didn't catch the mistake--Susan personally went from San Francisco to Walnut Creek to meet the underwriter and convince her to release the file.
I have had problems with almost all buyer loans in the past year. Having a strong and committed advocate like Susan is the only way to get something done.
I recommend using a major lender as opposed to a mortgage broker as well. I had a horrible experience with a mortgage broker recently. Prime Meridian or something. She kept blaming everyone else, wouldn't tell me anything and said that it was "out of her hands".
I think that we as Realtors really need to be pro-active and know our lenders and insist that our clients work with someone local whom we know and can work with as a team. Communication and relationships are becoming more critical than ever!
ALL the lenders are backed up as well as are the appraisers. With money almost free, many home owners are refinancing which in turn is slowing down the proccess.
I'm sorry you had a bad experience. Did you provide a full package to them?