The Madding World Of Obtaining A Loan

The Madding World Of Obtaining A Loan

The Madding World Of Obtaining A Loan

How To Get A Loan From The Bank

One of the loan officers who we deal with on a regular basis recently how frustrated her clients are in obtaining a home loan. She said that the request made by the investor were “insulting” because the borrower thought that in their mind that they had supplied more than enough information to qualify for the loan. The one loan officer works for a small lender not even one of the big ones. Have you talked with anyone who has dealt with the big banks?

The big banks have a process so daunting that oftentimes potential borrowers with 800 credit scores and good jobs cannot obtain a loan. We know one successful self employed business owner in San Francisco who had applied for a loan on less than $500,000 condo. Unfortunately this bank made him and his CPA feel like they were going though an IRS audit. In fact, an IRS audit may have been more pleasurable. The buyer mentioned to me that because of the experience that he would never use this bank again. Can you blame him?

No we can blame all of the banks and investors and the system. Even Fed Chairman Ben Bernanke mentioned at a recent hearing about the state of loans that the banks and investors have gone polar opposite in their loan philosophy. They moved from offering loans to anyone who breathed to not giving loans to a person with a solid job and an 800 credit score.

The Perfect Loan File

If you don’t believe us, then either head to your nearest bank and apply for a loan. Or contact us and we can tell you other stories and offer suggestions. Or read this story called, The Perfect Loan File from Forbes contributor Mark Greene. For the loan process he writes, “Just scan, photocopy, fax, and deliver every aspect of your financial life. Then, shortly before closing, check everything again.”

Is that how things will remain? Probably not, the banks and investors will either figure that they are losing so many potential consumers with ultra-strict guidelines or congress will step in and ease the regulations.

Until then, get that paperwork ready.

The Madding World Of Obtaining A Loan

The Madding World Of Obtaining A Loan

The Madding World Of Obtaining A Loan

The Madding World Of Obtaining A Loan

The Madding World Of Obtaining A Loan

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