When do these lender "Conditions" end?

Over "conditioning" is the mortgage world we live in today as a direct result of the mortgage / real estate mess where just about anyone could get a mortgage loan. Asking for more conditions based on what you already turned in is very common. Maybe the documents have become too old. Maybe one item opened a new door of questioning. As a great example, a client just yesterday provided me with all their standard documentation. I quickly noticed two things on those documents that forced me to ask for more documents (large deposits on this bank statement that needed to be explained, and what appeared to be undisclosed child support being taken out on his pay stub). The best way to avoid the constant asking for conditions is to be working with an NMLS licensed mortgage professional. Check out any loan officer at www.NMLSconsumerAccess.org. Not listed? No license! Need financing in MN or WI? Visit www.stpaul-mortgage.com

GREAT QUESTION: This is a question that everyone would like to know the answer to including myself. Unfortunatley there is no simple answer. The mortgage and real estate markets have been in turmoil for the last 6-7 years. This is mainly due to the large amount of defaulted loans over that period of time and still continuing. The guidlines were extremley loose during this period of time and in the subprime market. Until we have a consistent yearly performance of loans the guidelines will continue to get stricter and stricter. Keep in mind you have federal lending guidelines and then on top of that you have lender overlays, These are guidleines on top of guidelines, specific to each individual lender. Even with all of the strict changes to the lending guidelines, both FHA and Fannie Mae & Freddie Mac are in serious financial jeopardy. This is mainly due to defaulted home loans due to economic down turn, people losing there jobs and so forth. In answer to your specific question regarding your loan- it appears that there might have been a lapse of time when you were rebutting the appraisal value. This will result in getting most up to date financials such as bank statements, pay stubs, mortgage payment history ( if a new payment was due) these are not conditions that can be forseen by the lender but are asked for when your exsiting documents expire. Trust me most lenders will try to get everything up front but that does not mean that the underwriter will ask for additional documents. the best thing to do is comply with the lender and get them everything they are asking for as quickly as possible. Be patient with the loan officer as they are most likely doing there best to try and close the loan as quickly as possible. Bear this in mind while going through the loan process, that the loan officer does not recieve a pay check until your loan closes! Good luck and I hope things go smoother for you!

The lending business has changed considerably. It has become increasingly more frustrating for most potential borrowers since we have all become acclimated to the "easy money" days where a pulse and heartbeat almost got everyone a clear to close....the pendulum has swung the other way and now everyonw has guidelines that are much more stringent. Relax, get them what they want and realize that you are not being picked on, the company delivering your loan is only trying to make sure that they come under less scrutiny than you think you are feeling right now.

hi there: so is this a direct lender or Broker?? Is this transaction a primary home?? I am not sure why they are conditioning for what you mentioned above all of a sudden but if u'd like to contact me to discuss ..have couple questions for your scenario and maybe I can try to understand why the u/writer conditioned for what he/she needed? Maybe debt to income ratio or they incorrectly manually typed in wrong info regarding your loan application and had to re-run your loan in DU or LP and then received different conditions/findings..Mike (703 505 5300)