The world of condo mortgages is a battlefield, you have to be locked and loaded and on your guard. As a mortgage broker I have become crazy vigilant about preparing for the unexpected.
As most of you know, credit overlays are additional layers that a lender can impose on top of existing underwriting restrictions or government ordered guidelines. To each his own and financial institutions should do everything in their power to secure their interest. But to change a down payment requirement from 25% to 30% three days before a scheduled closing is a real kick in the condo.
We got the process change notification on a Thursday after 6PM stating that if all approvals weren’t completed by that Monday (a national holiday by the way) the new down payment requirement would go into effect.
The only thing we were waiting for was the financials and some insurance docs from the condo association; otherwise we were good to go until we were given only one business day to shake the association down for the paperwork that still had to go through several hands on a Friday before a three day weekend.
I wasn’t going to let that last minute hurdle kill this deal for my client, we managed to make it happen; we just had to go through a whole lotta hurt to get there.
At the end of the day you may not be able to distinguish between having a root canal and financing a second home condo. Perhaps mortgage brokers should be licensed to administer anesthesia to numb the pain until we get to the rinse and spit part of the transaction.