...according to underwriters.
I certainly understand the extra scrutiny given the history of the lending fiasco that we've been through but c'mon people, let's use a little common sense here.
The climate of qualifying for a loan has now become a 'guilty until proven innocent' fiasco.
Two current cases in point.
1) an agent in my office is involved in a transaction now in which the buyers are cashing in gold for their down payment. These are gold coins that have been passed down for generations. They have authentication certificates along with a statement from the most respected coin dealer in their town testifying to the fact that these coins have been in their family for years, he appraised them for the buyer's Grandfather decades ago. The 'gift' is in writing from the Grandfather. Underwriters have said it's not good enough and will not close the loan, period (72 hours before closing). Agent has procured another lender and is now looking at about a 3-4 week delay. Of course, the buyers MUST be lying about these mysterious gold coins!
2) Self employed buyer, fantastic credit scores, long time small business owner who installs guttering for various roofing companies and private homeowners. Has been in business for many years. He invoiced a customer, the customer wanted to pay him in cash, he agreed, marked PAID on the invoice and went and deposited the money in the bank. The underwriters have determined he can't use that amount for available funds to close. Basically, they are calling him a liar for where he got his funds. In there eyes, since there is even a possibility that he may have 'borrowed' it... disallowed. Nevermind that this repeat customer has paid in cash before over the last several years. Nevermind that this deposit was made weeks before he even looked at a house or entered into a contract.
These two cases are two of many that involve excellent buyers who now are being treated as shifty characters due to the lending practices of the past.
All I would ask is to start humanizing the files again. Start looking at them with a hint of logic. There are good people on the other end of these transactions who are being treated like, hmmm, like, well, LIARS!
Ten of Bill's Posts about Real Estate or the Marketing of Real Estate: