Many people in my industry have been experiencing something that isn’t necessarily new but seems to be getting folks a little more riled up than it used too. I am referring to stress from the mortgage process. Part of our job as realtors is to make things go as smoothly as possible, but there are some parts of a transaction that we can’t control. And one of those parts is the LOAN UNDERWRITING! With our market as crazy as it is lately, the whole home buying process can be stressful and then you add on the loan process and people can blow their fuse. Allow me to elaborate on three typical buyers that experience frustrations with the loan process.
1- The First Time Home Buyer
Home ownership is a big goal to reach for many people and depending on where you are in the country it can be extremely hard to achieve. You need to have savings, a good enough credit score, and a good job history. What most first-time buyers do not understand is just how much information needs to be provided. In my business I try to prepare buyers for this reality on the front end. Unfortunately, in a world of internet lenders and bad realtors people can get mad or frustrated with the loan officer or underwriting department. First time folks need to understand that it is NOT personal. You are not being picked on or told you are no good. Even the most credit worthy people must provide a lot of documentation.
2- The Older Home Buyer Back in Market
This happens to buyers who haven’t been in the market for 15 or more years. In many cases, these are retirees who are downsizing. The differences in the loan process from 1999 to 2021 can be a little jarring. And technology has changed the lender’s expectation of time and documentation. For example, you don’t drop off hard copies of your tax returns any more. Well, at least you don’t typically do that, but some folks still like those hard copies.
3-The Unorganized Home Buyer
Just like the first-time home buyer, this person can span all ages. Some people have a hard time keeping track of and tracking down important documents. That is ok because not everyone is super organized. But if you know that you are planning to buy or sell a house, you need to get started with some organization on the front end. Be prepared to have your tax returns at a minimum and go from there.
Anything worth having often requires some effort. So be prepared to exert some in the home buying process. Don’t blame someone or take it personal. Step up and get it done. No one else is going to do it for you.