When Applying for a Mortgage in 2008 be ready to have Patience
As a Licensed Mortgage Broker in Florida (Palm Beach Gardens), I am seeing a trend in the later part of 2007 and predict it to continue into 2008 of each Lender (Bank of America, Countrywide, Indy Mac Bank, Wachovia, etc..) to really examine each application and each piece of paper. Maybe this should of been done from the beginning, but we really can not go back now and change what was. Gone will be the 24 hour turn times on a rush file.
Now please DO NOT get me wrong if you have good to excellent credit and have plenty of equity in the home their will be no problem getting a mortgage. In addition, keep in mind the appraisals will really be examined thoroughly and that will take some time.
When I started in the business I swore I would never submit to multiple Lenders at the same time. Well what is the old saying "Never Say Never". At this point unless the file is perfect clean file I find myself submitting to multiple lenders at the same time just to see who is going to close first expecially if the file contains either Low FICO's, High LTV's (Loan-to-Value), No Proof of income or assets.
The reason for this is very simple everyone is afraid to make a decision. Most of the Lenders that are left have lost their investors (who they sell the loans to) and are keeping the loans in house. With the exception of Fannie, Freddie or FHA type of loans.
Even Hard Money /Private Money loans are examining more the ability to repay the loan not just based on the Loan-to-Value of the property.
I see moving foward in 2008 having the ability to Broker your Mortgage application to several Lenders at one time as a huge asset to have. Again, if you have a perfect file it really won't matter where you go other than if you are rate shopping.
So in closing, take my advice for 2008 when applying for a Mortgage and have Patience..
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