Picky picky mortgage lenders

guccimamma · Jul 2nd, 2008, 06:22 PM

Is anybody in the process of getting a mortgage?

We are certainly not new to the process, and I understand the banks are getting more scrupulous. But the underwriting is killing us, they keep asking for the same documents over and over again...then they ask for some more. They are actually looking for things to look for.

I feel like a 1st time buyer, but this is probably our 15th mortgage...and we have darn near perfect credit, and 25% down payment!

It is like the window of opportunity to get money is closing quickly.

illinirdhd · Jul 2nd, 2008, 06:28 PM

DH was telling me the other day he heard on CNBC that two years ago, a person needed a 700 credit score to get the best interest rate. Now they need a 775. Unbelievable.

bagaddict44 · Jul 2nd, 2008, 09:22 PM

yea we are sort of ( still looking)... this will be our 3rd home... the others were in 2000 and 2002 so getting a loan was so much easier! I thought part of it might be because the other 2 homes that we owned were in colorado and this one will be in california. we noticed different places gave us different loan amount limits.. luckly we have scores over 800 so we are hoping we will not have any more problems when we actually find a home that we want to close on. The paperwork is insane though!! I feel just like you that if we wait too long they are going to get even stricter with the loans and we will not be able to get one or they will require something like 30% down!! we will have between 10-15% down depending on the price of the home. Getting a home was so much easier a few yrs ago and WAYYY easier in a lcol area.

bnjj · Jul 2nd, 2008, 09:43 PM

I just got a HELOC to pay out my mortgage and it was painless and they only asked for my last two paystubs and a copy of my latest propery tax assessment.

I don't recall jumping through hoops as a first time buyer either as I recall it being a painless experience as well.

Maybe things are quite a bit different in Canada.

Irishgal · Jul 2nd, 2008, 09:49 PM

Quote:

Originally Posted by guccimamma

Is anybody in the process of getting a mortgage?

We are certainly not new to the process, and I understand the banks are getting more scrupulous. But the underwriting is killing us, they keep asking for the same documents over and over again...then they ask for some more. They are actually looking for things to look for.

I feel like a 1st time buyer, but this is probably our 15th mortgage...and we have darn near perfect credit, and 25% down payment!

It is like the window of opportunity to get money is closing quickly.

That is wierd!

pidgeon92 · Jul 2nd, 2008, 10:43 PM

I got my mortgage in 1998, then refinanced it twice.... it was a paperwork nightmare both times. I have stacks and stacks of paper in my closing documents.

I can't believe they stopped scrutinizing the paperwork to that degree. Why a company would lend out hundreds of thousands of dollars without verifying the ability to pay it back astounds me.

guccimamma · Jul 2nd, 2008, 11:53 PM

i understand their reluctance, and need for documentation...but it is certainly a far cry from a couple of years ago. all they needed to know was we had good credit, and a stable income...now they want blood. it is their money, they can do what they want. it is just eye-opening.

Zophie · Jul 3rd, 2008, 12:27 AM

Everything has changed. I haven't tried to get a mortage, but when I bought my car three months ago I had trouble getting a loan. I have a four-year-old bankruptcy so I knew I might have a little trouble with some lenders, but a few years back I knew other people who also had one on their credit and had no problem getting the loan. I basically was putting enough of a downpayment on the car that I'll never be upside down in the loan and I have perfect credit for the past four years and can prove I make well enough to afford it. I almost thought I might have to get a cosigner.

uafly1 · Jul 3rd, 2008, 01:11 PM

My co-worker was telling me that he could not even get an idea of what kind of mortage he could get unless he had a contract on a place he was looking at buying.
That's crazy.

RealDealGirl · Jul 4th, 2008, 10:19 AM

The banks have done a complete 360 in just a few years. Eventually they will have to ease up on the current strict standards or it will hurt them. They need to lend money in order to make money and excluding a huge percentage of the population from qualifying for loans is like biting the hand that feeds them. We want to sell our home and buy another, but we're going to wait this out and see where things go from here. That said, I don't think it will ever be as easy to get loans as it was just 5 years ago, banks were practically begging people to borrow money then.

barcreperie · Jul 5th, 2008, 07:47 AM

Seems the pendulum has swung too far in the other direction since unscrupulous mortgage companies were seducing unqualified people in to signing up for mortgages they couldn't possibly pay. But if the mortgage companies keep up the current trend, it will make it even more difficult for us to recover from the real estate slump we're in.

txngo · Jul 5th, 2008, 12:48 PM

Quote:

Originally Posted by illinirdhd

DH was telling me the other day he heard on CNBC that two years ago, a person needed a 700 credit score to get the best interest rate. Now they need a 775. Unbelievable.

Every bank has a different Fico criteria in determining best pricing, the one that I'm working for is asking for 740 or higher. It used to be 700.

Jul 2nd, 2008, 06:22 PM	#1
guccimamma guccimamma	Picky picky mortgage lenders Is anybody in the process of getting a mortgage? We are certainly not new to the process, and I understand the banks are getting more scrupulous. But the underwriting is killing us, they keep asking for the same documents over and over again...then they ask for some more. They are actually looking for things to look for. I feel like a 1st time buyer, but this is probably our 15th mortgage...and we have darn near perfect credit, and 25% down payment! It is like the window of opportunity to get money is closing quickly.

Jul 2nd, 2008, 06:28 PM	#2
illinirdhd Sofa King Hooked Location: Las Vegas, NV	DH was telling me the other day he heard on CNBC that two years ago, a person needed a 700 credit score to get the best interest rate. Now they need a 775. Unbelievable. __________________

Jul 2nd, 2008, 09:22 PM	#3
bagaddict44 Member Location: California	yea we are sort of ( still looking)... this will be our 3rd home... the others were in 2000 and 2002 so getting a loan was so much easier! I thought part of it might be because the other 2 homes that we owned were in colorado and this one will be in california. we noticed different places gave us different loan amount limits.. luckly we have scores over 800 so we are hoping we will not have any more problems when we actually find a home that we want to close on. The paperwork is insane though!! I feel just like you that if we wait too long they are going to get even stricter with the loans and we will not be able to get one or they will require something like 30% down!! we will have between 10-15% down depending on the price of the home. Getting a home was so much easier a few yrs ago and WAYYY easier in a lcol area. __________________ LV Wish list-2008 mono keepall 55 mono batignolles vertical-purchased 7/08 mono zippy coin purse- purchased 9/08 mono key and change holder-purchased 6/08

Jul 2nd, 2008, 09:43 PM	#4
bnjj ♪ Jovi Junkie ♪ Location: Bon Jovi Blvd.	I just got a HELOC to pay out my mortgage and it was painless and they only asked for my last two paystubs and a copy of my latest propery tax assessment. I don't recall jumping through hoops as a first time buyer either as I recall it being a painless experience as well. Maybe things are quite a bit different in Canada. __________________

Jul 3rd, 2008, 12:27 AM	#8
Zophie I <3 my Maltese! Location: New Orleans, LA	Everything has changed. I haven't tried to get a mortage, but when I bought my car three months ago I had trouble getting a loan. I have a four-year-old bankruptcy so I knew I might have a little trouble with some lenders, but a few years back I knew other people who also had one on their credit and had no problem getting the loan. I basically was putting enough of a downpayment on the car that I'll never be upside down in the loan and I have perfect credit for the past four years and can prove I make well enough to afford it. I almost thought I might have to get a cosigner. __________________

Jul 2nd, 2008, 10:43 PM	#6
pidgeon92 Member Location: Waukegan, IL	I got my mortgage in 1998, then refinanced it twice.... it was a paperwork nightmare both times. I have stacks and stacks of paper in my closing documents. I can't believe they stopped scrutinizing the paperwork to that degree. Why a company would lend out hundreds of thousands of dollars without verifying the ability to pay it back astounds me.

Jul 2nd, 2008, 11:53 PM	#7
guccimamma guccimamma	i understand their reluctance, and need for documentation...but it is certainly a far cry from a couple of years ago. all they needed to know was we had good credit, and a stable income...now they want blood. it is their money, they can do what they want. it is just eye-opening.

Jul 3rd, 2008, 01:11 PM	#9
uafly1 Member	My co-worker was telling me that he could not even get an idea of what kind of mortage he could get unless he had a contract on a place he was looking at buying. That's crazy.

Jul 4th, 2008, 10:19 AM	#10
RealDealGirl Berries 'n cream Location: Connecticut	The banks have done a complete 360 in just a few years. Eventually they will have to ease up on the current strict standards or it will hurt them. They need to lend money in order to make money and excluding a huge percentage of the population from qualifying for loans is like biting the hand that feeds them. We want to sell our home and buy another, but we're going to wait this out and see where things go from here. That said, I don't think it will ever be as easy to get loans as it was just 5 years ago, banks were practically begging people to borrow money then.

Jul 5th, 2008, 07:47 AM	#11
barcreperie Member	Seems the pendulum has swung too far in the other direction since unscrupulous mortgage companies were seducing unqualified people in to signing up for mortgages they couldn't possibly pay. But if the mortgage companies keep up the current trend, it will make it even more difficult for us to recover from the real estate slump we're in.