I applied for a cash out refi on a rental I own in Memphis. Broker took my application and other paper work. I wait and wait. Follow up a couple times. Still waiting on lender is the answer I get. Finally, THREE MONTHS AFTER I first applied, the mortgage broker tells me that the lender NEVER GOT MY PAPERWORK! She also tells me that the lender will not probably require updated documentation.
Well, I at this point I think they can put the old documentation they lost WHERE THE SUN DON'T SHINE.
I'm done with mortgage brokers and lenders! Gonna stick with subject to's and land contracts.
The government has no business in the loan market AT ALL. That means no Fannie/Freddie loans and artificial constraints on lending. Let the banks do their freaking job!
I haven't been to a big bank recently that even understands credit and lending. All they know is accepting deposits and accounts. Some of the smaller banks still have some old timers that know what they are doing, but when they retire I am convinced that the entire lending industry will be owned by the gov-mint indirectly.
I started the application process for a loan last December and we closed on April 1st...crazy stuff! I had to go through 4 brokers to get the deal done b/c banks are so freaking picky now. I had a subject-to deal with a private 2nd and ending up having to use a portfolio lender to get the stinking deal done.
The days of closing in two weeks to one month are over. You can expect turnover time from date of application to funding to be around 90 days. But that is not always the lenders fault. Our wonderful Obama administration now requires mortgage lenders to order appraisals through an appraisal management company. So you are looking at 2 to 3 weeks just to get an appraisal completed by someone who may not even know the real estate market you are located in. I will say some lenders are just flat out lazy and do not care. Sorry that you had to go through this.
My last purchase (Oct 2009) was our personal residence and it was a tough property to appraise and find comps for. My mortgage broker still got it closed in 30 days. It took some hand holding, and he had to push hard to get it completed on time. It was not a typical property yet we still managed to close on the scheduled date.
I'm looking at properties now, spoke to broker yesterday to verify where rates are and how much time he thinks we'll need to close a deal. He's still telling me 30 days will be no problem, says we can close even quicker if need be.
I keep hearing how hard loans are to get, but personally, I'm not seeing it.
Standard, owner-occupied property loans are fine. If you are an investor and used a modicum of creativity to structure a deal the crap hits the fan quickly.
What if you buy something subject-to and want to refinance...or are an investor that improved something 6 months ago and want to count the improvements? What if you have 10+ loans already?
Every situation is different and perhaps things have loosened up a bit lately. The head of RENC in Austin stopped dealing with banks altogether for a stretch because of this lunacy. Perhaps things are a bit better now.
My broker says for the 5th loan, the requirements really get stiff. He said he can get loans done for up to 7, after that he's done.
I'll be on number 4 if I get this deal done - at that point I really won't be actively pursuing another property until probably next year.
We'll see where the market is when I go for #5, at that point I'm sure I'll feel the squeeze.
The pendulum has swung from too loose to too tight. If the market was left to correct on its own it would heal itself in due time. It's the government intervention that forced the liar loans in the first place, if they'd keep their noses out of the market it would correct itself.
The government has no business in the loan market AT ALL. That means no Fannie/Freddie loans and artificial constraints on lending. Let the banks do their freaking job!
I haven't been to a big bank recently that even understands credit and lending. All they know is accepting deposits and accounts. Some of the smaller banks still have some old timers that know what they are doing, but when they retire I am convinced that the entire lending industry will be owned by the gov-mint indirectly.
The government has no business in the loan market AT ALL. That means no Fannie/Freddie loans and artificial constraints on lending. Let the banks do their freaking job!
I haven't been to a big bank recently that even understands credit and lending. All they know is accepting deposits and accounts. Some of the smaller banks still have some old timers that know what they are doing, but when they retire I am convinced that the entire lending industry will be owned by the gov-mint indirectly.
The government has no business in the loan market AT ALL. That means no Fannie/Freddie loans and artificial constraints on lending. Let the banks do their freaking job!
I haven't been to a big bank recently that even understands credit and lending. All they know is accepting deposits and accounts. Some of the smaller banks still have some old timers that know what they are doing, but when they retire I am convinced that the entire lending industry will be owned by the gov-mint indirectly.
The government has no business in anything PERIOD.