Lending Standards Remain The Same

They aren’t tighter or looser.  The article does state that they remain tight which is true for certain things like condos and appraisals.  But people who are getting a mortgage or have recently obtained a mortgage see this headline and automatically state that there is way too much that the bank is asking for.  That may be true to a certain extent but it certainly doesn’t have to do with asking for your tax returns, W-2’s, all pages of your bank statements, explanation for large deposits, a divorce decree, property settlement agreement, etc.  The bank has every right to ask for this to make sure you can afford the home. 

This has always been required with Conventional and Government loans.  If you got a mortgage a couple of years ago you may argue that this was never asked for but you probably have no idea what type of loan you got.  If you were getting a true full documentation loan (Not a SISA, Freddie Mac LP Accept Plus, etc.) then you would have had to provide these things.  Too many people think they know more about the business than the people who do it for a living.  If you had any idea the amount of information a mortgage professional has to know right now they would get a lot more respect because it isn’t easy. 

Quit complaining about having to save and email a document, it’s not hard.  No one is asking you to swim the Atlantic.  Be glad you didn’t buy 3 years ago.  Be excited that you are getting a 30 year fixed rate in the low 5%’s or high 4%’s. Be happy that you are getting an $8,000 or $6,500 tax credit.  Do I need to continue on? 

http://online.wsj.com/article/SB10001424052748704107204575039412460103460.html?mod=rss_Europe_Markets_News