Why Is My Mortgage Approval Taking So Long?
A local mortgage broker schools us on why a simple transaction can be so frustrating these days.
If you've applied for a mortgage in the last three years, you may have been in for a nasty surprise. What was once a relatively simple transaction may have become cumbersome, frustrating and mind-numbing. Why the difference? The answer is multifaceted, and varies from lender to transaction to borrower. Below are some reasons why, but first, a little mortgage history is in order. In approximately 1995, Fannie Mae and Freddie Mac instituted automated underwriting systems (AUS). The reason made sense; the underwriting "engine" put emphasis on high credit scores, with varying risk given to small down payments. The smaller the down payment, the higher the risk to the lender, so documentation requirements, cash reserve requirements, and …
