The pendulum has swung 180 degrees regarding lending matters. If you don’t believe me, try getting a loan, or ask someone who has recently tried to get a loan. It’s a nightmare!
Seven to nine years ago, all you had to do was breathe to get a loan. You qualified for a loan if your heart was still beating, and you could tell them you were earning $100,000 a year, and they believed you: no proof required! And you could buy your “dream home” with barely putting anything down, and the home was yours! Today, the opposite is true.
Today, if you want to purchase a property, you’d better have “all your ducks in order.” You will need to get totally PRE-APPROVED. That means you must submit the last two years tax statements, along with bank statements and any other paperwork showing income. You’ll also need to have a high FICA score to qualify. Your lender will tell you what your score must be to quality. There will be many documents they will request along the way. When I was obtaining a loan a few months ago, they actually asked me why I used my cell phone for business. Dah….wadda ya think? There were a few more questions they asked, but they are too stupid to put into print.
If you get far enough in the process and they actually tell you that you have been Pre-Approved, don’t get too excited. Once you have an accepted offer, they will continue to request papers from you. And up until the day they’re ready to fund your loan…….they can pull your loan and stop the entire process. In my case they were supposed to request a transcript from the IRS. The purpose is to make sure the tax papers I sent the IRS, were the same ones I sent to the lender……but in my case, the lender neglected to contact the IRS. After waiting a week after the date the loan should have funded, I personally went to our local IRS and obtained this transcript (at a price) and sent it to the lender. The loan funded the following day. Had I not gone to the IRS, I might still be waiting for the loan to fund!
And here’s another thing that can cause you HUGE headaches. Now-a-days lenders are not allowed to request a particular appraiser like they did in the past. In many cases, appraisers who have never set foot in your area are being asked to appraise your new property…….but they know NOTHING about the neighborhood, the views, upgrades that add value, etc……which is why many appraisals are coming in so low. They are also using foreclosed upon property in terrible condition as comparable sales, which has also helped bring values down.
Buying a property today takes “nerves of steel and a bucket full of patience,” but the truth of the matter is this is an IDEAL TIME to be buying property. Never have we seen such low interest rates coupled with such attractive property prices. It’s a “match made in heaven!” What I predicted 3 years ago.
In many areas, as well as the desert, inventory is extremely low and we are experiencing “multiple offers.” Prices are beginning to climb and the future is looking a heck of a lot better than it did a year ago! If you’re thinking of buying or selling, or know someone who is, just give me a call. If it’s in another city, state or country, I can help you as well. I have “real estate partners” everywhere but Mars! And that may happen in the near future as well. You just never know!
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IMPORTANT: If you or someone you know is interested in buying or selling a home in the Palm Desert Area, try searching properties on the same Desert Area MLS Realtor’s use, or give me a call….or visit my website at Palm Springs Homes and Estates. I will be happy to give you or your referral my “red carpet service.” After the sale, I will send you a $50 Gift Certificate towards dinner in a fabulous Palm Springs Area Restaurant so you can celebrate!
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