I have seen alot of changes through out the years. When I started in Real Estate in the 80's, every deal had to be creative. We had tons of assumable loans, seller financing, and although the interest rates were high people could get a loan. In fact if the buyer got pre approved than they were like gold as long as they didn't run out and buy a car or loose their job.
It seems the only things that close anymore are cash deals and seller financing deals. I was in a class the other day and someone was relating that they had a walk-in the other day that found the perfect property right away but unfortunately they need a loan. Three other people said in unison "I'm sorry, better luck next time". Later on that day I talked to a local lender who is telling me how slow things are and that noone is coming in for loans. I just told him that clients and agents alike are convinced that there are no loans to be had. Start lending and they will come. Were not asking for loans for a house that is falling down to someone with a credit rating of 400 and no job. Just meet us half way here.
In all these years the one thing that has always been consistent is that infamous "Oh by the underwriter needs (something really difficult and that doesn't make sense) to make this close". The "oh by the ways" are really getting ridiculous. I have a condo listed. It isn't suffering from broken condo syndrome and isn't on the foreclosure rolls. It is in a very desirable area, not overpriced, every unit is owned and occupied. We were scheduled to close last Thursday. We knew going in that not all lenders loan on condos so the buyers agent helped them find a bank that would specifically lend on condos. All through the process both the selling agent and I and the title company have been in contact with the lender and making statements like "things are going too smoothly what else do you need?" We finally got the underwriter to ask for one small thing.
All along we have all been told, things are great in fact we can fund earlier than expected. So on Thursday we are waiting for the funds to come in, everyone has signed their docs, and the moving vans are revving up. It's 2 p.m. and the funds never come. We call the lender and find everyone at a training seminar, and we can't find out what is going on. We have buyers who are homeless, and sellers that have a deal that will fall out if this doesn't get fixed fast. Friday comes and we finally get ahold of a live body that says "oh by the way, the underwriter does not want to lend on a condo". Hello, it was a condo 45 days ago, it was a condo 3 days ago when you said we were done and ready to fund. It isn't like it was a house and then changed into a condo last night.
To all the underwriters out there please remember it is not just figures on a paper, People's well being are almost always hanging in the balance. When you have said we are ready to fund and your supposed to be wiring the money over is not the time to throw in an impossible "Oh by the way"
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