repairs: The 2 Major Snags That Can Derail Your Mortgage Loan: Significant Home Repairs And A Low Appraisal - 05/22/10 05:55 AM
The mortgage lending underwriting environment has changed dramatically in the last several years. At the peak of the bubble, mortgage professionals joked that you needed only to be able to fog a mirror to get a loan. These days, even borrowers with good incomes and good credit scores can get turned down.
Much of the change is driven by the stricter underwriting standards imposed by Fannie Mae, Freddie Mac and FHA. There are two major issues which come up repeatedly in transactions today which can derail a borrower’s loan: (1) repairs, and (2) the appraisal.
1. The house requires substantial repairs
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