Home Loans in Kenmore WA - pre- approval

By
Real Estate Agent with Isaac Real Estate &TriStar Mortgage

Home Loans in Kenmore, WA - pre- approval

It is getting harder and harder to get a Home Loan Approval these days.  We have never really seen this level of necessary paperwork ever.  As a loan originator and a real estate agent, I prepare my clients from day one to be ready for everything they can imagine to be asked for and then some.  But every time there is a new deal, I am surprised at what problems can arise in getting a Home Loan Approval.  I just had an FHA loan denied, after we already had a Home Loan Approval from the lender pending results from a 4506T response from the IRS.  That form is used to verify that they indeed did file tax returns.  

It turns out, however, that my client had not filed her 2007 Tax returns.  She owned no money, we had the necessary W2 forms.  Not only did they deny the loan, but they would not even put the Home Loan Approval process on hold until she filed the tax returns the next day and wait to send out another 4506T.  We had to start the loan all over again at a different lender and she may need to go look for a different home .  These lenders are getting more black and white in how they see everything with less and less exceptions possible. 

 

Open Cartoon House Home Loan Houses

 

 

 

And, by the way, we had to wait over 5 months for the short sale approval from the 2 different banks so we could buy this home and get the Home Loan Approval in the first place.  Now, after she gets the Home Loan Approval all over again, we have to hope that the 2 lenders will give us an extension so she can still buy the same home. 

So, I learned again, not to assume anything when getting a Home Loan Approval.  I assumed because we had W2's that she had filed a tax return. It just goes to show you that we have to ask questions no matter how obvious we think the answers are when we are going for a Home Loan Approval.

Comments (3)

Barb Szabo, CRS
RE/MAX Above & Beyond - Cleveland, OH
E-pro Realtor, Cleveland Ohio Homes

A hard lesson to learn, but now that it's behind you, it won't happen again. I hope she will get this home.

Nov 23, 2009 10:07 PM
Jirius Isaac
Isaac Real Estate &TriStar Mortgage - Kenmore, WA
Real Estate & loans in Kenmore, WA

Thanks, Barb.  We are still working on it.

Nov 24, 2009 04:50 AM
Anonymous
Pablo
The Tim' asks What kind of amusing home ilitsng action have you seen in your neighborhood? I'm not sure if this is amusing, expect in a tragicomic sense, but this presents a classic example of the bubble.It's in a housing development carved out of a wooded area in 1999. It was during the county-wide push for higher density and the developer was allowed, if not encouraged, to cram way too many homes into the development. Relative to other eastside SFH's, these houses have tiny front porches, tiny yards, and tiny backyards. As a result, they have huge turnover relative to the surrounding neighborhood, providing a great opportunity to watch the bubble in action.The history of this particular house is bit strange since it was part of an inventory of houses for a corporate relocation company, but there are several other houses that have sold once or twice during the 8 year period. Sales HistoryNov 17, 1999 $435,282Mar 28, 2000 $449,600Sep 08, 2005 $695,000Listing Price HistoryFeb 14, 2008 $850,000Feb 28, 2008 $800,000Mar 20, 2008 $750,000Mar 27, 2008 $700,000Apr 17, 2008 $650,000Apr 24, 2008 $600,000 The sad part to see is the crashing expectations of this poor homeowner; from $850k to $600k over a 4 month period. Once it finally sells, the homeowner will be losing over $100k (maybe $200k) in real money, not paper profits, from what was probably a $100k initial investment.I don't know this homeowner, but I doubt that he knew that he might be signing up for this kind of ride down when he signed those papers in 2005. The disclosure of the possibility of this sort of loss should be a required step in the RE purchase process just like the standard disclosure when purchasing stocks or mutual funds; Past performance does not guarantee future success . Right now it seems to be the opposite. Oh no, believe me, this area is really hot. It's just going to keep appreciating. I'll bet Seattle's not looking so special to this guy. Someone buy him a pony.
Apr 21, 2012 10:18 PM
#3