I was reading another blogger’s post, and it reminded me of a thought I really wanted to get out to the buying public today. You see, Fannie Mae, Freddie Mac, and FHA may write their guidelines on what they demand in the underwriting of the loan, but maybe EVERY lender and major bank adds to those guidelines additional variables that make underwriting a little more strict in different areas. Those additional guidelines are referred to in the industry as overlays.
What does this have to do with a First Time Buyer, or a move up buyer?
Documenting a loan has changed...like learning a new language today.
There is not a “one way to do it” style anymore, and it’s a great idea to make sure that we energetically urge new buyers to have most, if not all if possible, of their income, asset, identification, and tax documents to their preferred lender before they start the official home shopping. Today, w/ so many overlays in guidelines from the banking world to what guidelines are actually written by Fannie and FHA, the loan officer may need to submit some of those documents to his underwriting staff to make sure his pre-approval is accurate, and you don’t want that holding you back on a bid. For the Realtors reading this post, take this opportunity to support your value proposition and earn your respect and business by putting your foot down and demanding that your buyer get these documents in full to their loan officer early.
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