I enjoy speaking with home buyers and homeowners regarding qualifying for a particular FL mortgage loan program.  Every day someone is referred or has found us through a Google search; and needs answers to questions upfront, before applying for mortgage approval.  For example, questions regarding short sale, bankruptcy or foreclosure seasoning requirements are frequent.   Did you know that a home buyer may qualify to purchase a new home without waiting 3 years, after a short sale?  I’ll save that for another time.  For now, let’s consider today’s mortgage environment expectations for AAA credit home buyers or borrowers.

Most first time home buyers are so anxious to purchase their new dream home, they will jump through any hoop that an underwriter can heave.  First time buyers have nothing to compare when applying for a mortgage home loan, because it’s their first time at bat.  They have saved some money for down payment, may have even worked out kinks found on their credit report, and have income stability by holding down a good job, or jobs in the same line of work,  for at least 2 years.  Whatever supporting documents are needed to approve their mortgage loan, they’ll provide; usually with no questions asked.  But what about the AAA credit seasoned home buyer?

These buyers or home owners (when refinancing) have obtained a FL mortgage loan or 2 in the past and learn quickly that today’s mortgage market and approval processes are much different.  They may need to provide additional supporting documents that were never asked for on previous home purchase or mortgage refinances.  Over documentation with some lenders seems to take the worry away or reduces the risk in the eyes of the originating lender.  These very well qualified, sometimes over-qualified buyers must jump through the same underwriting hoops as a less qualified home buyer.  This can be uncomfortable especially when many of these AAA home buyers could simply pay cash for their new home and not borrow at all.  Why all this fuss?

The truth is simple.  Lenders and banks are cautious with every mortgage loan – because if that home buyer or home owner ever defaults, the originating lender could be held accountable for any I not dotted or T not crossed.  All of a sudden, credit, income and assets; may no longer lead to a clear path for streamlined underwriting.   I mention to all of my previous AAA clients, to please sit back and relax as we will be asking for more supporting documentation than our last refinance or home purchase mortgage.  As always we FL mortgage professionals will do our best to make the entire home buying or refinancing process as smooth as possible.  Thanks

Stephen Thaggard, NMLS 356309,  Sr Loan Officer, licensed in Florida,

Embrace Home Loans, NMLS 2184,  5500 Murrell Road Suite 201, Viera, FL 32940