Gene Mundt - Let's Talk Mortgages & Real Estate!

     Getting a deal closed in today's real estate world has become a long distance marathon ...

     What used to take about 3 weeks to accomplish ... can now take up to 2, 3, 4 months, or even longer.    And no .. I'm not dissing banks, Wall Street, underwriting,  underwriters, or anyone else specifically here.  

     There are alot of fingers in this messed-up pie!  

      Transactions just take longer to close.  A pretty obvious FACT ...

     Real estate has always been known by the often-heard phrase, "Location .. Location .. Location"! 

     Currently, I believe it should be known by "Documentation .. Documentation .. Documentation"!  Or maybe something more unprintable.

     I'll be the first one you hear agreeing with the sentiment that approval for loans in the not too distance past had become way too lax.  The proof of that is hard to debate.  If you've read any of my posts and know anything of my past, you'll know I started with a Savings and Loan over 30 years ago.  Hard to believe given how young and handsome I look now, huh?

     But seriously ... getting approved for a loan was just a different experience then ... the path you took to approval was vastly different.  This can't be over-emphasized!  The approval process was carried out on a much more personal, human level ... most likely by a group made up of Board of Directors of your bank/savings or loan or your bank's officers. 

     No doubt this method had it's kinks too.  I won't debate them.  But, there was none of the current inhuman, unfeeling automation.  The decision was based on fairly cut and dried, clearly understood terms ... not much grey area ... and over pretty quickly!  There was some decorum and common sense to the process.  None of the endless back and forth ... the "Let's Make a Deal"-ness that you find currently.  If you got bad news regarding your approval, you heard it quickly and could move on. 

      Too many of our clients just get tormented to hell these days.  And it needs to stop, or at minimum return to a number that is un-obscene.  I closed a loan last night (in the client's living room, btw ... one of the advantages of modern loans) ... and that poor couple's lives had been put on hold for almost 4 months.  Thankfully for me, this couple was intelligent, understood every step of their processing, and did not hold me personally accountable for the delays.  Sometimes, you're just not that lucky and clients DO get mad.  Good Lord ... that's understandable!

     And please, my fellow mortgage professionals ... spare me the "that never happens to me" incredulous stuff.  As the saying goes ... "#*%!@ Happens" ... and last night's transaction was a real doozey of an example of all of "it" that can hit the proverbial fan. 

     It DOES happen once in awhile .. and to the very best of us too.  Circumstances out of MY control just dragged this poor couple's negotiations and legal steps and communications and appraisal on ... way beyond what this couple should have had to endure.  (And I'll add to that ... mine too.)  At so many levels, common sense just never entered into the equation.  So sad ... and infuriating ...

     It's happening WAY too often.  I am beginning to see a light at the extreme end of the tunnel ... but it's still going to be awhile before real sanity returns to the process.

     Like I said above ... getting a deal closed today has become a long distance marathon.  You better be in darn good shape, the best shape you can be when you enter into a transaction ...

     And that's whether you're a buyer, seller, agent, the property and credit status, mortgage originator, or any other real estate professional ...       

     Do the homework!  Clean-up that credit beforehand!  Be ... and stay informed!  Be prepared!  Communicate and Document!  Get ready to work HARD!  Don't drop the ball!  Don't lose your cool!

And #1 Tip  ...

STAY IN SHAPE AND EAT YOUR WHEATIES!!!

     *  If you are in need of an experienced, knowledgeable mortgage banker to answer your questions and guide you through your homebuying or refinancing experience ... or just need answers for your current loan and credit questions ... please contact me through any of these means:  CELL/TEXT:  708.921.6331  EMAIL:  gene@chicagobancorp.com   WEBSITE:  www.genemundt.com.  I look forward to hearing from you!