Great article on Forbes about the Perfect Loan File. I like this article because it does a good job of explaining the rationale behind the ardous underwriting hoops loan companies put consumers through to get a home loan in the 2012 Real Estate Market in Los Angeles County, California. If I had a dollar for every time a consumer complained about “Why” they have to produce certain documentation, I would not have to spend 16 hours a day chasing down conditions, attending webinars on changes to underwriting and compliance guidelines, completing disclosure packages, and following up with reps and underwriters.
It makes sense if you think about what they are doing. They are basically making you jump through unnecessary hopes just to make sure you are the type of person that follows directions and to see if you are the type of person that will do what they tell you to do, when they tell you to do it without hesitation or the type that is going to fight them on everything. I own property and occasionally have to hire people. I do exactly the same thing when screening potential tenants or employees. Colleges & Grad schools do the same thing, requiring completely unnecessary credentials just because they can. So do many employers, its a great way to weed out the people that don’t really want it from those that do.
Anyway if you are in the process of applying for a home loan in 2012 and are frusturated, you should read this article, the perspective may make things easier for you.