MortgagesUndressed

I will be introducing you to some characters you should know. The first is Cruel Karen. Karen’s name has been changed by me because I just don’t dare make her mad.

Cruel Karen shouldn’t still be in the mortgage business. She is the underwriter from two worlds below heaven. She isn’t going to be allowed in Heaven without some serious attitude changes. The last I heard she was taking massage therapy classes at night.

An underwriter is the person that gives your loan final approval. No final closing documents can be sent for you to sign without her approval. No money can be wired to the Escrow Company without her final approval.

Almost every underwriter in this business has a caring attitude about people. They also recognize their important role in this the largest most personal purchase of most peoples’ lives. They care. They do have to turn down loans that don’t qualify. They have to document what is important. But they don’t look for reasons to give you an unnecessary hard time. That is unless, you are Cruel Karen.

I introduce you to Cruel Karen to prepare you. Banks make money by approving loans, none by denying them. They usually sell the loan to an investor. They have made commitments to the investor what the pool of loans will contain. For example, each loan may have credit, appraisal, title, equity, employment, and cash reserves conditions that the loans they approve must have. Karen knows the rules. It is her job to see each loan the bank closes meets those conditions. However, in her Cruel Karen mode, Karen interprets them in a tough to ridiculous manner.

Being prepared for Cruel Karen is important. She worked at the first bank I worked for and popped up in a new job every few years. There are things you can do to not let her stop your loan. First of all, deal with a reputable loan officer. Karen hates fraud, and loan officers have reputations. If you end up with one she doesn’t trust, she may not trust you.

Document quickly every claim you make. Don’t piddle around to the end. Provide everything you are asked for and do it without delay. If Karen wants bank statements, divorce decrees, pay stubs, tax returns, copies of checks, appraisal on your antique guitar (she did that to me once), or a photograph of a window (Karen did that to me too) get them for her. (I will later share one story about a photo she wanted of a fireplace.)

Karen only picks on people occasionally. That is how she keeps her jobs. Your complete and well documented file may make her pick on someone else. If you end up finding your loan is being underwritten by Cruel Karen the way to get your loan completed is not to complain but to comply. It is not to delay but to expedite. When you feel stress as you are being asked for more documentation, just smile and get it done.

As I write this, I become even more certain that I will invite some caring Underwriters to participate in this forum. They are many. They are part of what makes this industry a delight.