Oh how the times have changed.
A year ago, a high credit score would get you pretty much any loan program, regardless of your down payment, and very likely without private mortgage insurance. Documentation was very simple for the customer, and for the mortgage company processing the loan.
The pendulum has now swung the other way, to the extreme. There have been so many loan defaults, institutional failures, and fraudulent activities that the mortgage process has become a "guilty until you prove your innocence" process.
We are now required to do numerous fraud prevention checks in addition to the normal processing we perform on a file. In addition, every detail of the transition is being scrutinized to the point it may seem like overkill. I want you to understand why this is taking place. Trust me, we do not like it, and it is extremely time consuming on our part. Fannie Mae, Freddie Mac, and investors who purchase loans in the secondary market, have been forced to tighten their guidelines to create a marketable security in secondary market. Let's face it, the beating mortgage back securities have taken in the market, would you invest YOUR money in anything to do with real estate as collateral?
Funds are plentiful if you are looking to buy a home, but "Borrower Beware", the process may seem like a visit to your doctor for the dreaded annual exam, including a DNA and blood sample until you prove who you say you are. (yes, this is tongue-in-cheek)
Grin and bear it for a while, understanding your loan officer is NOT picking on you, and certainly not making up the rules as we go.
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