Just a few months, I believe my dog could have gotten a no down loan with little concern from the lenders. Now, they have woken up and have lost their mind.
I just closed a transaction where I represented the buyer. These were sterling clients. Both work for Cisco and had big 750+ credit scores. And, if that wasn't enough, they were putting 25% down. And, the Seller had agreed to all clearances including Pest, roof and electrical code violations. This should have been a lender's dream loan. But, it got stalled and we called and called. Finally, we found out that it got put aside because there was a problem with the contract.
What? What does the contract have to do with loan approval. First, let me remind you. I teach contrac classes to real estate agents and have recorded a 6.5+ hour CD series on understanding the contract and how to explain it. So, when they said contract, I couldn't believe it.
You'll never guess what the problem was. On our state's 10 page contract, you write the name of the street on pages 2-8. I forgot to write it into one of the pages. And the other reason was that when we scanned it, 2 of the page numbers at the bottom of the page got cut off. Even though it had buyer and seller initials or signatures on each page, that we not enough.
Just when I think that the lending industry can no longer surprise me, they prove me wrong.