Pam's Prescott Blog

Whew!  I just went through a rough week on two closings.  One where I represented the seller and another where I represented the buyer.  Both closings were delayed because of last-minute requirements by the lender. 

Gone are the days of easy money, we all know that, but it really hit home with me as I struggled to get these sales to close. 

One thing the banks are doing is reinstituting the Audit, which takes place after the loans have cleared Underwriting, but before they are funded.  The auditors are going over them with a fine-toothed comb and if they decide they need more information, the buyer must provide it prior to the loan being funded.  One buyer had old W-2's stored in California that they suddenly had to produce the day before closing.  Another was asked for new pay stubs the day before they signed their final documents.

All of this reminds me to let my clients and customers know, before you buy, you MUST get loan counseling through a reputable bank, or preferably a mortgage broker.  Getting a full Loan Status Report (LSR) is a requirement of submitting an offer these days, and it may take some time.  So develop a relationship with a broker right away and let them work with you and guide you through the process.  You can find our recommended brokers on my Get PreQualified page.

The other thing to remember is that you will need lots of documentation, so get your "ducks in row."

Tougher lending standards are a pain sometimes, but they are good for all of us in the end!