How Can You Sell Real Estate in this Environment with the Banks?
I just received this email from a client and thought...what a great example this is of how difficult it is to get financing for buyers today. This client is putting down over 60% - yes over 60% - as a downpayment on a home and this is what he is going through:
“Hi Roberta,
I will be glad to give you a letter of recommendation with the highest marks as a professional in handling our purchase.
I do not know how you can sell real estate is in this environment with the banks. I bought a truck for over $50,000 recently and took a minimal financing to get an additional $1,000 off the price. I paid the loan off after 30 days. All I had to do was show my drivers license and sign some papers.
For a $45,000 dollar mortgage loan the banks are over the top.
This is the reason for slow recovery of the real estate economy and no other reason. It is the banks.
The banks want you to provide 3 years of IRS statements, then question every line on the statement that a CPA has provided. Then they want to know where your down payment came from in detail of your account even after supplying information that you can afford 10 times the amount of the loan requested.
If you have a bank deposit they want to know where it came from - even if it is $500.
Our accountant says she has three clients that want to purchase a home and they are having a very difficult time with the banks.
Then you have the Title companies to contend with. Want to provide your own letter of dower release with a notary stamp and signature? Oh nooooo! You have to have our attorney do the paper work for a fee that they have a clerk pull a form fill out the paper work and let an attorney sign.
You agents have to be a Saint to put up with these shenanigans every day.
Have a Nice Day, Roberta”
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