I constantly hear from both Sellers and Buyers that getting a mortgage is very difficult today, and it’s nearly impossible to obtain a home loan in a reasonable amount of time. This is a problem that affects not only the homebuyers seeking the loan, but also the seller. If the financing does not come through then the whole deal falls apart and it’s right back to square one with the home back on the market after months of wasted time.
So if you’re experiencing trouble getting a mortgage, I want you to know three things:
1. You are NOT alone
2. We feel your pain
3. Whether a Buyer or a Seller, you have options to avoid this problem
In this post, I want to share with you the story of a co-worker here are Rent2ownMarket.com who is currently having trouble getting a mortgage.
She and her husband have decided to purchase a new primary residence. They have strong credit, and enough income and assets to afford their new home. Because of this, they thought that getting a loan would be easy. After all, they have bought and sold many houses in the past, and haven’t experienced any trouble getting a mortgage. As they have found out, the reality is in today’s market getting a mortgage can be a nightmare even for highly qualified borrowers.
In the past, 30 days was the benchmark for getting a loan approved. They are well past 30 days and everyone involved in the transaction is nervously waiting to hear from the lender that the loan has been approved. The underwriting process, which was supposed to take no longer than 14 days (which was the published turn time that the lender provided to them), is now going on 30 days, and there is no end in sight. The reason given for this longer time frame is that due to new government regulations and stricter guidelines from Fannie Mae, lenders have had to add additional steps to the underwriting process.
The long, drawn out process is not only stressing them out, but is exposing them to liability from the Seller. Two weeks past the closing date, the Seller, who needs the proceeds of this sale to buy his next home, is getting very uncomfortable. He could decide at this point to start charging them fees, or to put the home back on the market and try to find a new buyer.
Working to get this mortgage approved has been almost a full time job for my colleague. Every day the lender comes back requesting additional information that has very little to do with the loan at hand. She told me the other day, “At this point, I am surprised that they haven’t contacted my parents to make sure that I was raised properly.” Due to their excellent credit score, I’m sure they will eventually work through all of the hassles the lender is putting them through, but others will not be so lucky. However, if it’s this much trouble getting a mortgage with good credit, then getting a mortgage with low credit scores is virtually impossible.
An alternative for people who have been denied or are having trouble getting a mortgage, is to buy a home through our Seller Financing Program. With our program, you bypass the need to apply for a mortgage with a lender – and are saved from all of the hassle and stress associated with getting a mortgage. In most cases, within 5 to 7 days of application, you will know if you have been approved to buy one of the homes that we have listed. Working with us to buy your next home is truly the easiest way to obtain home ownership. No hassles, no stress, no long waits – and happy endings.