Gene's Chicagoland Mortgage Blog: How Do we Fix the Problem of Reality?

How Do we Fix the Problem of Reality?

     This morning I was on Facebook. I'm connected with many other professionals there. Many of them are from ActiveRain.

     One of those AR professionals is Charita Cadenhead, Keller Williams Realty, in metro Birmingham, AL. Charita's a jewel and has become a favorite of mine. I just love her spirit and outlook. Today Charita wrote on her FB timeline, "There doesn't always have to be someone to blame when things go wrong. Sometimes stuff just happens."

     Whew ... did she hit a chord. That darn reality!

     Just the other day, I had a loan applicant see their opportunity to buy and borrow disappear ... at least for the short term.   Even after hearing the advice to "not buy, not charge, not move funds while in the Process" multiple times, they did just that. To the tune of $400.

   Now I know that $400 seems like an insignificant amount. That many will say that rules and regulations surrounding lending are way too strict if $400 eliminates or causes a hiccup in someone's lending powers. And I can sympathize with that to some extent.

     But ...

   The reality of today's financing did stop this potential Buyer's home buying dreams dead in their tracks. Again I will point out, that will probably only be for the short term. Time (and smarter credit handling moving forward) will most likely heal this issue.

     But ... and there's that darn word again ... in the meantime I was placed in the role of "bad guy". I had to tell the clients and all the other professionals involved in the deal that this transaction and financing were a "no go", at least for the time being.

   I point out that I used the word fragile above. Currently, so many of the clients I see, and their chances of Mortgage Approval, are ... fragile. And it's not just one segment of the homebuying population either. It's across the board. Low income ... high income ... and incomes inbetween.

     This fragility is why so many other things within their transactions can be so severely effected throughout the processing of their Mortgage. It's why issues (or one newly discovered hiccup during Underwriting) cause such major disruptions and such severe outcomes.

   All involved in these clients' transactions need to understand this fragility. Clients certainly, but professionals too.

     Some of the time there is no "bad guy". As Charita pointed out ... "Sometimes stuff just happens." Certainly in the case I speak of, no one was trying to cause a problem. No one did evil. The clients just didn't listen or think and that caused a problem for many.

     Often this is what we find ourselves faced with in transactions. We can rant or complain about it. We can say it shouldn't have happened. But it's reality. Now how do we fix the problem?

* Hoping to Buy a Home or Refinance in Joliet, Will County, DuPage County, or elsewhere in the Chicagoland area? Contact Me today! I'll put my 36+ years of mortgage experience and expertise to work on your behalf.
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