I never am the guy that wants to share bad news or focus on a negative. After saying that the lending arena is getting worse. Take the VA loan for instance. Lenders are guaranteed that the VA will pay them 25% should a borrower default. One would think it would be a pretty safe bet for a Lender to give money to a qualified Military member as they have job security. In addition the Lender will get at least 25% of their money back. In the not too distant past Lending money to service member's that had a 580 mid score and a 70% Dti back end ratio was common place because the lender was looking at the above mentioned factors. 2years ago I closed a loan for a client that had a recent bankruptcy, unstable employment history and not a dime in reserve. Today you couldn't look at a Bk unless it was Discharged 2 years out minimum. Some Lenders are now requiring a 720 mid score on a VA purchase. I recently had a transaction where the borrowers had a 40 DTI, 2 years in reserve, On the same jobs for over a decade and higher then 680 mid fico score. It was to be a slam dunk. 3 weeks into underwriting the file got put in suspense as overnight the investors changed their credit guidelines and now a 720 mid score was required. Now I am someone that double and triple checks my work before proceeding. I assured everyone that we were going to be fine only to get hit with the harsh news 3 weeks into it. Folks its very scary out there. Think about this scenario again. I couldn't have asked for a eaiser transaction. We did go to another lender and I have since attend the clients housewarming so there was a happy ending,
but whose to know if the result would have been the same 1 week from now. Bottom line if you have a client that is sitting on the fence its very important they realize time is very much of the essence.
HAPPY 93rd Birthday Grandma!!! Im sorry I wasnt there to celebrate it with you
Thats all Folks
Comments(0)