Mortgage rates are low, real estate is at rock-bottom prices and there are plenty of qualified buyers looking for a home; so why is it so difficult to buy a home?
Mortgage Underwriting Is a Big Problem for Buyers and Sellers, Says National Buyer's Agent Alliance
CHARLESTON, S.C., Oct. 17, 2011 /PRNewswire/ -- "The biggest challenge facing home buyers is often they don't know if their mortgage has been approved until a few days before closing," said David Kent, President, National Buyer's Agent Alliance. "This creates stress for buyers as they try to arrange movers and get utilities transferred." It also affects sellers too because they need to know that the loan will be approved to plan their move out.
One of the results of the banking crisis is that mortgage lenders have become very diligent in their review of mortgages. Understandably, the lender wants to make sure that every loan requirement is reviewed and verified. What makes this especially challenging is that mortgage underwriting guidelines are subject to interpretation. This not only slows down the process, but it can bring it to a grinding halt. The anxiety in the market and the pressure on underwriters to not miss anything has made the home-buying process extremely challenging for even the most qualified buyers.
The difficulty became all too real for one couple trying to purchase a condo in South Carolina. In this case, they thought their closing would proceed as scheduled after being told that their financials had been approved by the underwriter. However, a different underwriter with the same financial institution determined that they needed additional information regarding the condominium association.
The information was provided and the buyers again thought they were ready to close. Just prior to their closing date, the buyers were shocked to learn that a mortgage insurance underwriter did not approve the insurance and thus the loan was not approved. Fortunately, their buyer's agent sent their information to another financial institution where a different underwriter approved the loan and the couple was able to move into their new home. This is not an isolated case. These types of underwriting problems are echoed across the country.
Luckily, "the buyers were fortunate to have an exclusive buyer's agent, one whose total focus is on the buyer, representing them," said Kent. To avoid conflicts caused by agents trying to represent both the seller and the buyer and to help buyers overcome the hurdles of mortgage underwriting, the National Buyer's Agent Alliance helps home buyers find a buyer's agent in their desired location that will help them move through the process successfully.
Article: PRNewswire -David Kent, President, National Buyer's Agent Alliance
The views, opinions, positions or strategies expressed by the authors and those providing comments or external internet links are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of First Capital, we make no representations as to accuracy, completeness, current, suitability, or validity of this information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All registered trademarks, copyright, images, or other items used are property of their respective owner and are used for editorial purposes only.
Visit First Capital Online or call: 310-458-0010