Nate Delesline writes a good piece in today’s Daily Progress about the uphill battle faced in the local real estate economy with respect to the lending environment.
Matt Hodges sums up current thinking:
â€œI’m bullish on the lending market and the real estate market locally,â€ said Hodges. â€œWe believe that there’s even going to be a greater demand this year than last.â€
â€œThere was a pendulum swing where it was way too easy and then it was way too hard to get a mortgage,â€ said Hodges, who has worked in Charlottesville for 14 years. â€œToday, consumers still believe that’s it harder to get a loan than it actually is.â€
From my perspective as a buyer’s representative – if you’re qualified, you can get a loan. Getting a loan is a far, far more tedious process than it used to be, but it’s absolutely doable. There are challenges that need to be navigated, including the application process, appraisals, underwriting â€¦ but these are all surmountable challenges, particularly if you as a buyer have surrounded yourself with the right team.
Remember: lenders don’t ask for things repeatedly because they are bored – they’re asking more questions because they have to. Unlike the previous market, lenders do have some risk if they make bad loans. And we all benefit from a reasonably more stringent lending world. I’m not saying it’s perfect (and never will be). The knee-jerk responses (see: HVCC) by an ignorant, paid-for Congress are extreme, but I feel that we’re on a path to balance. Hopefully.Disclosure: Matt’s one of the Charlottesville lenders I recommend to my clients.
If a borrower can have needed information ready and available before seeking a loan, it will speed up the process. Rather than “fishing” for a loan, consumers should be prepared to go get financing. This includes having a good credit report, stable income, low expense ratio and money in the bank. If you have these nailed, then getting a loan should not be that difficult.