In the case of interest rates, the Fed’s end of year announcement that they would be pulling back some of the stimulus package that has helped keep rates where they currently sit is a certain catalyst for change. A mortgage rate buzz kill if you will…
The thing that held up the whole show was an undisclosed liability discovered when the credit report was pulled right before closing. Always in the Top Ten Things Not to Do Before You Close on Your Home, whatever happens in that time period between loan pre-approval and the subsequent underwriting process is not only fair game, it could kill your deal.
At the end of the day, don’t run with scissors and don’t ignore the mortgage professional. We managed to get this loan closed, but you’re not going to dodge the Fannie Mae’s of the world by thinking you can hide stuff because you know more than I do. Not when it comes to mortgages anyway…
One of my favorite quotes is attributed to a Scottish literary critic named Andrew Lang. Although he probably wrote it in the late 1800’s it is still very relevant: “He uses statistics as a drunken man uses lamp-posts…for support rather than illumination.”
Clients get frustrated. I’m not being nosy and I’m not trying to be difficult. If it’s an issue for which I need supporting evidence I am simply trying to clear the way for the underwriters who are going to pick up every rock and potentially slow down the entire transaction.
At the end of the day, if we get this stuff squared away at the giddy up, it will set the pace for the entire deal.
At this point, our industry has become an exercise in vigilance and maybe that’s not the worst thing. You just have to make sure that you hire the very best Realtor, mortgage lender, and home inspector possible so you know they are staying current on the stuff that changes daily to ensure that you’re equipped for every eventuality.
At the end of the day, this is no “fill in the blanks, sign here, and submit industry”…we’ve become a “you’ll-shoot-yourself-in-the-foot-unless-you-learn-how-to-stay-a-couple-of-steps-ahead-of-absolutely-everything” kind of industry!