by: Gaye Jones ~ AnnieMac Home Mortgage
There were so many changes made in the lending industry after the housing crash of 2008, and those changes keep coming. Each program (FHA, VA, USDA, and Conventional) all have guidelines of approximately 800 pages each, so you can understand how difficult it is to keep up with current guidelines.
The public, and honestly, some loan originators do not know these guides. When applying for a mortgage make sure the person taking your application has the knowledge of the guidelines.
A lender should not “just” be the person taking your application, they should be knowledgeable enough to advise you of your options. Buying a home is one of your largest investments and you want a person who can counsel you on the best program to fit your financial needs.
I had a customer last week that was told by an internet lender that he could not have 2 VA loans at the same time. That is not a new rule, Veterans have always been able to have 2 and sometimes 3 loans at the same time, depending on their eligibility.
It’s our job as lenders to know the guidelines and be able to advise the customer on what their options are for lending.
Many of the misinformation that I hear has to do with Income. The hardest part of this industry is knowing what income can be used for qualifying. You do not have to be in the same job for two years, but we do need a two-year employment history. College can count as employment if your degree is in the same field you are currently employed in. Commission, 1099 Income, Self-Employed Income and Overtime all have different guidelines.
If you are wanting to purchase a home or refinance an existing mortgage, the best advise I can give is to use a local lender and a lender that is experienced. Using an experienced and knowledgeable loan originator can be the difference between a smooth transaction or the disasters of last minute denials and horror stories.