Are Mortgages Fun?
Mortgages were fun in 2003. Think back to when anyone with a pulse could get a mortgage. Loans could be approved on "stated income" (meaning no proof of income) and 103% loans were available to cover everything from the down payment to closing costs. It was fun being a realtor. Or a lender. Or a buyer! Are you nostalgic for the good old days?
They were not really good, were they?
Are mortgages fun when they later blow up? How many people obtained those loans and then later defaulted? The borrowers, the lenders, neighborhoods, everyone suffered a severe penalty for the poor judgement that was the housing industry in the early 2000s.
Now, we have swung back to a much more stringent loan application process, which appears to be here to stay.
Are Mortgages Fun in 2014?
Are mortgages fun when the buyer is thoroughly vetted? When the appraisal must be independent of the lender? When everyone is much more sure that the buyer will be able to repay the loan over time? I submit that despite all the extra work, mortgages can be much more fun in 2014.
Lenders can Make it So
My preferred lender, Kelly Zitlow of Cherry Creek Lending, has passed the test- she has closed loans on time, with my buyers thankful for a smooth handover from account manager to loan processor to underwriter. Her article, "Tips for a Successful Loan Transaction," which includes some do's and don'ts during the loan process, should give you hope that again, the answer to "Are Mortgages Fun?" can again be "Yes!"
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