Great Credit And Plenty Down: Still Tough To Get A Mortgage
We all know the mortgage market has tightened up like a 1950s girdle lately, but all the experts keep saying, if you have good credit and money to put down, you’ll do just fine.
Well that’s not entirely what I’m hearing. Recently I’ve been getting some emails from friends and colleagues with some very telling personal anecdotes. I thought I’d share some:
This from a colleague at CNBC:
I am buying a property, and I am a first time buyer with the ideal profile -- great credit, 20-percent down etc ... but even so, the BANK asked for a copy of the inspection and even asked for certain things to be estimated and THEN demanded 1.5 times the estimates be put in escrow. I ended up going with another bank, but in talking with banks/brokers, there seems to be so much caution in lending, and banks are vetting things TOO MUCH.
This from a Manhattan attorney selling his co-op to a buyer with excellent credit who is putting 35 percent down:
"On the apartment front, nothing but trouble. Our buyer's bank is having concerns about our building's financial condition because the building showed a net loss on the building financials last year and because the building has spent a lot of money on a lawsuit with the adjacent building. That lawsuit is about to wrap up, with our building getting a decent payment. I've got our mortgage broker standing by to see if she can get them a mortgage quickly to replace this bank."
It appears it’s not even just the buyer anymore, but the building, the house; in short, the risk.
Questions? Comments? RealtyCheck@cnbc.com