Hi all..
I don’t check this site as often as I used to, but can always be reached directly (see above)
Recent govt regulations enacted in 2009 and Jan 1st 2010 have made it more difficult/frustrating/complicated to get a mortgage than ever before.
A borrower making $200K with 40% down and an 800 credit score can have a problem with a loan approval because something wasn’t disclosed properly. The old Good Faith Estimate(GFE) that was 1 page, has been “simplified” through govt intervention and is now 3 pages.
Lenders and underwriters have different views on how to handle changes and some amounts CANNOT change once they are disclosed, while others cannot go up more than 10%.
It might sound good on the surface, but if a borrower loses a lock because of this, it can cost thousands of dollars for this govt intervention if rates have moved up. I’ll address the down payment issue in next post. ..HLS..
