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South Loop Scoop
January 17, 2011
If you are considering buying a condo in Chicago, listen up, because lending guidelines just got even more strict. As if it was not already a challenge to get financing, Fannie Mae, Freddie Mac, and the Federal Housing Administration have all made changes to their lending policies. Therefore, if a condominium development is not approved, this makes it very difficult for buyers to get financing on some properties.
The housing market has had its challenges over the past several years, so I am not sure why they believe this will help. While I understand, they want to reduce risks; this may create another set of unwanted issues. If you are purchasing a home, it will be extremely important to use a real estate agent, since they can research your desired property, to avoid later disappointment.
Need an agent? Visit http://www.frankelgiles.com/our-agents.
For more information about the New Lender Guidelines Click Here!
September 2, 2010
This week, there were several issues with closings. The lenders have all informed me there is NO SUCH THING AS A QUICK CLOSING ANYMORE! And to add salt to the wound of having a slower market, they have now added additional obstacles for getting loans done. FHA now requires appraisers to attach a photo of the kitchen and bath to the appraisal, which mean all the ones completed prior to this change, will need updated appraisal prior to submitting file for a clear to close.
Some lenders now also require a “soft” credit report pulled and an employment verification ON THE DAY OF CLOSING! Another requires you to verify ANY deposits over $500 with documents. When will the restrictions end? Eventually they will want your blood type, leg, family history, past 20 years of employment history, dogs name, and favorite color prior to approving you for a mortgage.
Moral of the story, it will be in all of our best interest to offer words of advice to all clients in advance of the mortgage process. #1 Do NOT buy anything. #2 DO NOT open a new credit card #3 DO NOT spend any money in your account #4 DO NOT win the lottery (will fluctuate balance too greatly) and finally, #5 DO NOT BUY A DOG!
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South Loop Scoop
