Mortgage lenders suffered staggering losses when the market declined, and many have since closed. Those that have survived have created thorough guidelines to eliminate any potential risk. While home buyers no longer need perfect credit and a big down payment to guarantee a loan, they need to be prepared to reveal every aspect of their financial life in order to be approved.
Unfortunately, some home buyers aren’t comfortable with revealing their entire financial history, and can often try to hide certain aspects. This lack of cooperation can really hinder the process and even negatively affect the loan.
“The best piece of advice I give to our clients is to remain completely transparent,” said Steve DiMarco, president of Key Mortgage. “Your loan officer is on your side, and it’s important to have proper documentation for everything. We don’t want any surprises along the way.”
While these higher standards may seem excessive at times, they are in fact reducing loan defaults which translates into fewer foreclosures in the future.