The market is confused now. Many buyers and sellers are arriving at the closing and discovering that the home loan remains unfunded. In prior years this was unusual. The strong demand kept workloads heavy and papers were misplaced and clients mistreated, but usually at closing, the money arrived, everyone signed their papers and the process occurred.
Now lenders themselves are uncertain if the closing will occur. Basically many lenders do not retain loans in their portfolio: they immediately sell them and retain a commission. This system is broken for nonconforming loans, such as jumbo mortgages and subprime mortgages. If you think you have one of these loans, there is a good chance that you will encounter a problem, particularly if the agreement is not with a bank or credit union that intends to maintain the loan.
However, the good news is that conforming loans are still flowing smoothly and there is more time and effort available for these. So, this means that you need a conforming loan. That means a minimum down payment of 20%, qualifying based on presenting all documents and a loan value not exceeding $417,000.
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