March 31st, 2016 3:17 PM by Rob Robbins
I am happy to report financing is getting a little easier as we move into spring. One, the banking institutions and title companies said they would be ready for the new rules in late 2015. They have kept their promise. They did tell us that 30 day closings were a thing of the past and to write contracts for 45 days. I am happy to share I had one deal close in 28 days and another in 30 days from two different lenders and two different title companies. They were conventional loans which are a little easier with generally stronger buyers. I think what we are seeing are lenders moving their time table up and still allowing time for the 3 day disclosure period for buyers. The biggest hurdle I have seen is scheduling appraisers soon enough they get their work done. That did not hold us up.
Two, there are some new financing guidelines for Self Employed buyers that will help make it easier for a self employed person to get a home loan. The loan is based on cash flow through your bank account instead of just 2 years of tax returns.
You will still need a little more time for government backed loans and the 40 to 45 days is probably a good time frame. This type of loan has to be approved by a government agency and the lenders do not have control of how quickly loans get approved.
Three, the mortgage broker is soon to be a thing of the past. You need a mortgage banker or bank for your loans today. I experienced this first hand with a mortgage broker that could not sell the loan to an investor for a client due to a one time 9 month old late payment. It was not that it was not paid. It was just late. We were told they would have to wait a year before reapplying. I contacted another lender and they did the loan in 30 days.
Things are looking up,