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| *Loan,banking and credit>>>mortgage loan |
Do mortgage companies approve more loans in a slower market? |
I am buying a house in what was a hot market and now it is real slow. I just wondered if they are as pickey in a slow market. They tend to tighten their guide lines because their pool of borrowers in smaller. So they want better loans with less default. They are more pickey because there is more risk in a slower or declining economy. I would think with a slower market they would have MORE time to be more thorough with the loan process. Since the Loan Processor/Officer doesn't have 50 files sitting on their desk waiting to be delt with. They are not as picky when it's slow, just because they need the money. If you mean the housing market, no. Mortgage companies could care less what the housing market is doing in a particular sector. However, it could affect your approval because of the appraisal. If homes in the neighborhood haven't been selling, or have been selling for lower amounts, then it will definitely affect the appraised value and ultimately your loan approval. Rick Lanicek www.primelendingonline.com It really depends what aspect of your approval you're referring to. If it's your credit score or Loan-to-value, chances are the basic guidelines of a lender haven't changed. If you're talking about untangibles like questionable occupancy or questionable stated income, you may slip through the cracks during cool periods in the market. At the same time, as someone here mentioned, the appraised value of your home is more at-risk due to the slow market, so you could end up with a cut appraisal review. But if you're simply trying to submit a sketchy deal, you probably do have a better chance of getting it approved because lenders are more desperate right now for deals because of the relative scarcity. For more information, check out: http://www.thetruthaboutmortgage.com... http://www.thetruthaboutmortgage.com... |
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