MortgagesUndressed

I received a pnone call Monday from a real estate agent. His story is significant to the recent flavor of articles on this blog. Here is the mess, I mean the story.

His buyer is one week from closing. Like many, he is hungry for a great rate. The purchase agreement was signed 3 weeks ago. He was approved by the agents favorite lender. Appraisal was done on time, inspections were completed and signed off, all looked well for closing just before Christmas.
I said it is a mess. The credit bureau sent, as they are doing now, notice to their trigger list that this transaction was in process. Numerous lenders called the client, all with stupendous rates. The buyer let each one of them make him a quote. Without telling anyone in the original transaction know it, he even arranged for the home to have an appraisal by one of these lenders.

He thought he was fine. Here is the sequence. The originol bank went to draw documents but did a second credit check. You can guess here, with all the new credit inquiries the score had dropped below the banks guidelines. The buyer doesn’t qualify. The second step, no problem the buyer says, I have another loan approval. Guess again here. They need documents to sign with this new lender - and they don’t qualify for the low rate program after all. They do qualfiy for 8%.

This buyer is probably without options. They undressed themselves.